STOCKHOLM, Sept 24 Wed Sep 24, 2014 11:08am EDT
STOCKHOLM, Sept 24 (Reuters) - Cash-strapped China's National Electric Vehicle Sweden (NEVS) said on Wednesday it would lay off up to 200 staff at its Saab car plant in Sweden as production is unlikely to resume anytime soon.
NEVS, which bought the bankrupt Swedish carmaker Saab in 2012, halted already-low output in May because of a shortage of money. In August, it obtained protection from creditors through a Swedish court while trying to secure funding.
"The ongoing discussions on collaboration and ownership structure, which have not yet resulted in a binding agreement, indicate that the decision for a start-up of production will take time," NEVS said in a statement.
It said the layoffs, due to lack of work, were a step in a reorganisation plan that the company's administrator would present at a creditors' meeting on Oct. 8.
NEVS has earlier said it was in talks with two unnamed car firms to secure more money, that it has external debt of about 400 million crowns ($56 million), and that it made a pretax loss last year of 601 million on sales of 41 million.
The firm is betting on an electric version - now in a prototype stage - of a decade-old Saab model to bring the brand back from the dead. It is targeting its home market of China.
(1 US dollar = 7.1852 Swedish crown) (Reporting by Anna Ringstrom; editing by David Clarke)
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