The factory has been out of action since May 2014, with Nevs unable to pay its suppliers.

A statement from the company said that the cuts were happening because there was not currently enough work for staff. 

Nevs bought Saab in 2012 after the car maker ran into serious financial trouble and filed for bankruptcy. It produced its first fleet in December 2013, but struggled to regain financial momentum.

"The terminations will take place in September in order to rapidly reduce the company's costs during the reorganisation period," Nevs said.

The company said that if negotiations with new investors succeeded, it would be able to resume production with the remaining employees.

However, Nevs did not specify the status of the negotiations and added that "a start-up of production will take time".

Sweden's IF Metall metalworkers union said: "Faithful and competent auto workers are being laid off again, and the faith in the future that many felt in Trollhaettan runs the risk of turning to resignation." 

According to reports in the Swedish media, Nevs, which is 78 percent owned by China's National Modern Energy Holdings and 22 percent by the Chinese city of Qingdao — is in negotiation with automakers Mahindra (India) and Dongfeng (China).

Since 2000, Saab automobile has had no connection with the defence and aeronautics firm with the same name. It only produces one model today, the electric 9-3 Aero Sedan, mainly targeting the Chinese market.