Major suppliers to Swedish auto maker Saab, including automotive plastics injection molder International Automotive Components (IAC), have suspended production and cut deliveries to the company in the wake of Saab's cash flow problems, said SupplierBusiness, an IHS Global Insight company. "The head of the Swedish suppliers association said he believes that at least five component suppliers have not received payments since March 25, which could easily add up to millions of Swedish kroner or hundreds of thousands of dollars," said the report. "The unpaid bills to certain suppliers resulted in extreme measures as interiors supplier IAC stopped delivery of components, with the disruption affecting production."
IAC's CEO Markus Nyman, is quoted in the report as saying, "The outstanding amounts are now so big that we had to make this decision in order to protect our other interests and customers." IAC supplies key interior parts to Saab, including door panels, center consoles, instrument panels, and wheel house liners. However, a deal was reached with Saab on March 31, so that the disruptions would not continue into a third day, said SupplierBusiness. ...