Chrysler LLCs suppliers have begun asking for cash on delivery for auto parts, the Associated Press reported late Thursday, citing an interview with executives. Vice Chairman Tom LaSorda and Chief Financial Officer Ron Kolka said suppliers and other vendors have demanded COD, but the company is "fending them off," the AP said.
When suppliers demand COD from a troubled company such as Chrysler, it can cause chaos in the company's financial structure.
Chrysler's cash will drop to $2.5 billion by Dec. 31, company officials have said. That's the bare minimum the automaker needs to make payroll and pay suppliers, according to the report. Chrysler pays its suppliers $7 billion every 45 days, Kolka told the AP.
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