Alert: Saab owes millions of Euros in unpaid bills image

Several parts suppliers in Sweden have halted deliveries after Saab failed to pay them, according to the Swedish suppliers’ organisation FKG.

“We’re starting to get really worried,” Christer Palm, chairman of Swedish automotive supplier group FKG, told Detnews a week ago in a telephone interview . “You can’t have it this way, stop-and-go, stop-and-go. It isn’t making anybody happy.”

Saab’s chairman Victor Muller said on Monday that Saab was “not on the verge of collapse”.

“The interruptions are caused by shortages in material shipments in part related to the tight liquidity situation,” Saab said in a statement. “The company is confident to soon resume normal operations, with the additional funding that we expect to secure.”

But this did not mollify suppliers who fear for Saab’s financial health.

“They cannot pay their bills,” said FKG chief executive Svenake Berglie.

Moreover, today, Svenake Berglie, chief executive of the FKG suppliers’ sector association, told Reuters that the automaker (Saab) has tens of millions of crowns in unpaid bills (10 mil SEK =~ $1.5mil ).

The problems at Saab have given rise to media speculation the brand may not survive much longer, despite only a year having passed since a last-minute rescue by Dutch firm Spyker (SPYKR.AS), which bought it from General Motors (GM.N).

Production at the Saab plant in Trollhattan, Sweden, has been interrupted several times over the past two weeks due to shortages of components as suppliers that haven’t been paid withhold deliveries.

Spyker’s CEO Victor Muller has now conceded the company needs major investment and the company is pinning its hopes on Russian investor Vladimir Antonov.