Under the agreement, National Electric Vehicle Sweden AB (NEVS) will purchase all shares and assets in Saab Automobile AB, Saab Powertrain AB and Saab Automobile Tools AB for an undisclosed sum. Intellectual property rights for the 9-5, owned by General Motors, and Saab Parts AB are not included in the sale.

NEVS said will revive the Saab brand, which filed for bankruptcy six months ago, out of its former headquarters in Trollhättan and is recruiting new staff immediately.

Karl-Erling Trogen, chairman of National Electric Vehicle Sweden AB, commented: ‘We will match Swedish automobile design and manufacturing experience with Japanese EV technology and a strong presence in China. Electric vehicles powered by clean electricity are the future, and the electric car of the future will be produced in Trollhättan.’

Saab’s first new model will be based on the lates 9-3 (pictured) and use a Japanese-developed battery-electric drivetrain. An all-new vehicle, developed in-house, will follow afterwards and is due for a global launch with initial focus on the Chinese market.

Kai Johan Jiang, founder and main owner of National Modern Energy Holdings Ltd, the majority shareholder of NEVS, said China was a vital market for the new brand: ‘China is investing heavily in developing the EV market, which is a key driver for the ongoing technology shift to reduce dependence on fossil fuels,’ he explained.

‘The Chinese can increasingly afford cars; however, the global oil supply would not suffice if they all buy petroleum-fueled vehicles. Chinese customers demand a premium electric vehicle, which we will be able to offer by acquiring Saab Automobile in Trollhättan.’