Koenigsegg And NEVS Enter Into A Strategic Partnership To Develop New Cars

Swedish car makers NEVS AB and Koenigsegg AB have entered a strategic partnership which will see them develop parallel vehicle models in slightly higher volumes with emphasis on electrification, as well as strengthening growth opportunities in the hyper car segment. NEVS will make an investment of 150 million Euros, thereby taking a 20 percent minority stake in Koenigsegg's parent company.

Additionally, the parties are forming a joint venture to expand into new market segments where NEVS AB is contributing $150 million in starting capital for a 65 percent stake and Koenigsegg obtains 35 percent by contributing primarily with intellectual property, technology licenses, and product design.

Through the additional joint venture NEVS and Koenigsegg are partnering up to develop a product for new and untapped segments. Through NEVS production facilities in Trollhattan, Koenigsegg will access additional capabilities as well as benefiting from the extensive automotive knowledge in the region, whilst maintaining their centre of excellence in Angelholm.

Alongside NEVS capacity for production in Trollhattan and China, NEVS through its majority owner Evergrande, has a wide distribution platform and channels through ownership in one of China's largest car retailers. Last week, Evergrande announced the acquisition of 58.07 percent in automobile battery maker Shanghai CENAT New Energy Co Ltd, a $156 million deal.

Christian von Koenigsegg, Founder and CEO of Koenigsegg, said, "Koenigsegg is breaking new ground, capitalising on our unique technology, performance track record and market position to explore and develop new products. This partnership will create the best conditions for Koenigsegg to accelerate growth in the hyper car market, as well as enabling us to break ground into an untapped market segment together with NEVS. We very much look forward to working together with NEVS to develop products that ensure a sustainable future"