Northvolt Bankruptcy

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Otispunkmeyer

Original Poster:

13,327 posts

169 months

Tuesday 26th November 2024
quotequote all
https://www.reuters.com/technology/northvolt-files...

So Northvolt has gone. Add that to BritishVolt.

Why is it seemingly so hard for us to do this kind of thing in the west/Europe. Do we just have to admit this kind of thing will be the preserve of China and other SE Asian countries? This must be yet another blow to European car makers, who are already feeling the pain.

Nomme de Plum

7,050 posts

30 months

Tuesday 26th November 2024
quotequote all
It is not what the article states.

"
Northvolt, which employs around 6,600 staff across seven countries, said it expects to complete the restructuring by the first quarter of 2025......


Northvolt said the $100 million in a new loan is part of $245 million in financing support for the bankruptcy. Swedish truck maker Scania, a shareholder and its biggest customer, said on Thursday that it was loaning $100 million to Northvolt to support the manufacturing of electric vehicle battery cells in Skellefteå, northern Sweden.
"This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production," Tom Johnstone, interim chairman of Northvolt's board, said in a statement, noting the support Northvolt has received from existing lenders and customers.
As part of the restructuring, Northvolt will evaluate proposals for new money investment from strategic and financial investors, as well as existing lenders, shareholders and customers, he said."


Notwithstanding the Chinese are able to build batteries and have a ready market for them with their own vehicles.


Otispunkmeyer

Original Poster:

13,327 posts

169 months

Tuesday 26th November 2024
quotequote all
Nomme de Plum said:
It is not what the article states.

"
Northvolt, which employs around 6,600 staff across seven countries, said it expects to complete the restructuring by the first quarter of 2025......


Northvolt said the $100 million in a new loan is part of $245 million in financing support for the bankruptcy. Swedish truck maker Scania, a shareholder and its biggest customer, said on Thursday that it was loaning $100 million to Northvolt to support the manufacturing of electric vehicle battery cells in Skellefteå, northern Sweden.
"This decisive step will allow Northvolt to continue its mission to establish a homegrown, European industrial base for battery production," Tom Johnstone, interim chairman of Northvolt's board, said in a statement, noting the support Northvolt has received from existing lenders and customers.
As part of the restructuring, Northvolt will evaluate proposals for new money investment from strategic and financial investors, as well as existing lenders, shareholders and customers, he said."


Notwithstanding the Chinese are able to build batteries and have a ready market for them with their own vehicles.
Yeah I read that, but I don't think bankruptcy and restructuring is going to do anything but kick the can down the road unfortunately... I've been part of too many businesses that have done the same. It never takes that long to be back with no pots to piss in.

Nomme de Plum

7,050 posts

30 months

Tuesday 26th November 2024
quotequote all
Otispunkmeyer said:
Yeah I read that, but I don't think bankruptcy and restructuring is going to do anything but kick the can down the road unfortunately... I've been part of too many businesses that have done the same. It never takes that long to be back with no pots to piss in.
I suspect you are correct. It is hard to compete with manufacturing taking place in a much lower cost base area along with the economies of scale the Chinese have just to supply their internal market.

That is how the Chinese are able to sell EVs so cheaply into the wider global market.

Cobnapint

8,991 posts

165 months

Tuesday 26th November 2024
quotequote all
VW are in choppy waters as it is, they won't be happy with this.

It seems the whole of Europe's vehicle manufacturing is on a slippery slope. Stellantis are closing Luton
https://search.app?link=https%3A%2F%2Fnews.sky.com...

And shares are down all over due to the threat of Trump's tarrifs.