Chrysler LLC says that its suppliers are at a risk of financial collapse within “days if not weeks.” Scott Garberding, Chrysler’s chief procurement officer told Automotive News that the supplier liquidity problem is “becoming more significant by the day”.
“We’ve been having multiple instances arise each week for the last few weeks where we’ve had suppliers let us know they were out of cash,” Garberding said.
He said that Chrysler is working closely with those suppliers and hopes to negotiate an acceptable payment term. He reassured that there haven’t been any major disruptions that will cause production delays.
Supplier relations chief Sig Huber said that the number of suppliers at high-risk has tripled since December. Huber said that almost 45 suppliers are now in the high-risk category. The number represents 23 percent of Chrysler’s purchasing volume.
– By: Omar Rana