Saab Suppliers Pressure Automaker to Declare Bankruptcy
Swedish Automobile, owner of financially-stricken Saab, is being pressured by European suppliers to declare bankruptcy, hoping the threat will pressure the automaker to pay back debts.
Saab production came to a halt in April, with suppliers refusing to deliver components because they were not being properly paid. Spanish auto panels maker Matrici S. Coop prepared a bankruptcy request, after being owed $2.8 million by Saab.
Lars Holmqvist, head of the European Association of Automotive Suppliers said, “Some companies are waiting and having no answer. Now, some have heard that other companies have been paid partially. Then they are getting very upset. They realize there is no other way but to try to demand bankruptcy because obviously then Saab pays.” Lars also explained that he had been contacted by some German companies that were owed more than 5 million euros each. They too are also interested in pursuing the process to demand Saab bankruptcy.
Saab spokesman Eric Geers explained, “We know the situation we are in. We are working very hard to resolve this and to get a more stable financing in place.”
Earlier this year Saab’s employee union threatened to push the automaker to the bring of bankruptcy over unpaid wages to workers.
[Source: Automotive News]
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Besides the French, the German and Spanish are pretty obnoxious peoples, so no surprises here.