Saab owes tens of millions to suppliers

If you’ve been following news about Saab recently, you’ve probably figured out that the company is in some serious trouble. On March 30, Saab said that it faced a short production stop after “certain suppliers halted supplies to Saab Automobile pending discussions about payments and supply terms.”

That news was followed up with the following headlines:

• Spyker says Saab’s future is uncertain without new investment
• Spyker: Saab not on the verge of collapse, will be profitable in 2012
• Saab stops production once again due to supplier issues

Those type of headlines are obviously bad for a company looking for additional investment. It is now reported that Saab has tens of millions of crowns in unpaid bills, according to the head of a Swedish suppliers organization said.

“I don’t know how much it is in total, but we are talking about tens of millions [of crowns],” Svenake Berglie, CEO of the FKG suppliers’ sector association, told Reuters.

Saab, which wasn’t available for comment, said that it is holding talks with suppliers to sort out a liquidity squeeze that has disrupted production.

– By: Omar Rana

Source: Automotive News