New Long Ma sells controlling stake

Fujian New Long Ma Motor Co Ltd, one of the major minivan producers in China, on Thursday sold a controlling stake to a consortium led by the main assets owner of Swedish automaker Saab Automobile AB.

It sold 65 percent of its shares to Sino-Sweden joint venture National Electric Vehicle Sweden AB and Beijing State Research Information Technology Co Ltd.

NEVS bought the main assets of Saab Automobile and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB as well as the Saab factory in 2012.

Fujian Motor Industry Group Co and Longyan City, the former shareholders of Fujian New Long Ma, will hold 20 percent and 15 percent shares, respectively, after the regrouping.

With its eyes on the country's emerging new-energy vehicle industry, the minivan maker aims to release a pure electric sedan, the 93EV, in the fourth quarter of 2017 and add new assembly lines to produce electric vehicles and sport utility vehicles in the future.

"We want to play a key role in China's new-energy vehicle industry," said Kai Johan Jiang, chairman of National Electric Vehicle Sweden AB, the main assets holder of Saab.

According to Jiang, China is NEVS' biggest market and will play the key role in its new-energy businesses in the long term. The company will focus on its China business only.

The capacity goal of the Fujian company is 150,000 vehicles per year. The company expects to make a profit by 2017 and reach 20 billion yuan ($301 million) sales revenue in 2020.

The regrouping move empowers the minivan maker to equip vehicle technologies from Saab at the initial stage, then develop its own new-energy vehicles.

Jiang said New Long Ma would make only electric vehicles in the future.

On Thursday, the Fujian firm also signed a 5.3 billion yuan contract with Panda New Energy Co Ltd, to sell 35,000 units of its special vehicles.

The first delivery will be a fleet of pure electric logistics vehicles, starting from October.