Vehicle Company Goes Bankrupt – 1,400 Employees Affected

IAC Group Sweden, which supplies components to Volvo companies and Scania, has been declared bankrupt. The company has approximately 1,400 employees in Sweden. The goal is to find a new owner during the summer, says the trustee Mikael Kubu.

» Updated: October 08 2024

» Published: June 27 2024

Vehicle Company Goes Bankrupt – 1,400 Employees Affected
Photo: Adam Ihse/TT

IAC Group Sweden, which supplies components to Volvo companies and Scania, has been declared bankrupt.

The company has approximately 1,400 employees in Sweden.

The goal is to find a new owner during the summer, says the administrator Mikael Kubu.

The vehicle component company IAC Group filed for bankruptcy for the Swedish part of the group on Thursday.

"The company cannot pay its debts," writes IAC Group Sweden in its bankruptcy application to the Göteborg District Court.

In a press release, the company refers, among other things, to the effects of the pandemic.

"We have not been able to create the necessary liquidity to continue operating for our highly valued customers in Sweden," writes IAC in the press release.

1,400 employees

IAC supplies components to Volvo Cars, AB Volvo, and Scania.

According to the administrator Mikael Kubu, CEO of Ackordcentralen, there are good opportunities to find a new owner for the company.

There are interested parties and a great need for the company's products. So we will try to sell as soon as possible, he says.

Our absolute goal is to find a new owner by the end of the summer.

This would also mean that the employees could keep their jobs.

The employees are always laid off in the event of bankruptcy. But that does not necessarily mean that they will ultimately lose their jobs, says Mikael Kubu.

The goal is to maintain operations, and there is strong support from the company's three customers.

Large tax debts

According to the bankruptcy application, the company has approximately 1,400 employees in Sweden, where IAC has operations mainly in Färgelanda, Skara, and Göteborg.

Unfortunately, we do not have more information than that. We need to meet with the administrator first, said Ivica Stojkovic, a trustee for IF Metall at IAC in Färgelanda, after the announcement.

According to Sveriges Radio Ekot, IAC was the company in Sweden that had the largest tax debt after the pandemic, SEK 1.2 billion.

IAC Group has recently sold its operations in the UK and announced that its operations in China will also be sold.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Police Warn of Crime Surge
1 MIN READ

Police Warn of Crime Surge Risk Following Northvolt Bankruptcy

Cristina Stenbeck Returns as Kinnevik
1 MIN READ

Cristina Stenbeck Returns as Kinnevik Chairman After 7 Years

Stockholm Stock Exchange Faces Downturn
1 MIN READ

Stockholm Stock Exchange Faces Downturn as US Trade Talks Stall

Stock Market Sees Largest Single-Day
1 MIN READ

Stock Market Sees Largest Single-Day Drop Since 2020 Pandemic

Sweden's Inflation Falls More Than
2 MIN READ

Sweden's Inflation Falls More Than Expected, Offering Economic Relief

Transport Unions and Employers Seal
1 MIN READ

Transport Unions and Employers Seal New Wage Agreement

European Stocks Slide Further After
2 MIN READ

European Stocks Slide Further After US Tariff Announcement

EU Tariffs on US Goods
3 MIN READ

EU Tariffs on US Goods Could Raise Prices for Swedish Shoppers

Asian Markets Slide Following US
1 MIN READ

Asian Markets Slide Following US Tariff Announcement

IMF Warns US Tariffs Threaten
1 MIN READ

IMF Warns US Tariffs Threaten Global Economic Growth

Trump Signals Openness to Tariff
1 MIN READ

Trump Signals Openness to Tariff Negotiations for Economic Boost

EU Prepares Trade Countermeasures as
3 MIN READ

EU Prepares Trade Countermeasures as US Tariffs Loom

WTO Warns Trump's Tariffs Could
1 MIN READ

WTO Warns Trump's Tariffs Could Cut Global Trade by 1 Percent

Canada Imposes 25-Percent Tariffs on
1 MIN READ

Canada Imposes 25-Percent Tariffs on US Cars in Trade Dispute

Macron Urges EU Firms to
1 MIN READ

Macron Urges EU Firms to Rethink US Investments Over Tariffs

Volvo's Shift to Electric Cars
2 MIN READ

Volvo's Shift to Electric Cars Faces Scrutiny as Diesel Demand Persists

Stellantis Halts Canada and Mexico
1 MIN READ

Stellantis Halts Canada and Mexico Production Over US Tariffs

Fitch Downgrades China's Credit Rating
1 MIN READ

Fitch Downgrades China's Credit Rating Citing Economic Concerns

Wind Farm Cable Approval Granted
2 MIN READ

Wind Farm Cable Approval Granted but Vattenfall Faces Cost Hurdle

US Stock Market Tumbles as
3 MIN READ

US Stock Market Tumbles as Tariffs Hit Tech Giants

US Tariffs Pose Global Economic
2 MIN READ

US Tariffs Pose Global Economic Challenge, Says Swedish Central Bank Chief

Ikano Bank Faces Police Report
1 MIN READ

Ikano Bank Faces Police Report in Denmark Over Misleading Marketing

EU Trade Chief Sefcovic to
1 MIN READ

EU Trade Chief Sefcovic to Discuss US Tariffs on Friday

Volvo Cars Boosts US Production
3 MIN READ

Volvo Cars Boosts US Production in Response to Trump's Tariffs

US Imposes Tariffs on Remote
1 MIN READ

US Imposes Tariffs on Remote Penguin Islands in Australian Territory

Saab Secures Major Order for
1 MIN READ

Saab Secures Major Order for Combat Vehicle Systems from BAE Systems

Trump Tariffs Threaten to Hike
1 MIN READ

Trump Tariffs Threaten to Hike Coffee Prices in the US

Trump's New Tariffs Spark Global
2 MIN READ

Trump's New Tariffs Spark Global Criticism and Economic Concerns

Kent Concerts Spark Hotel Market
1 MIN READ

Kent Concerts Spark Hotel Market Boost in Stockholm

US Boosts Norwegian Salmon Imports
1 MIN READ

US Boosts Norwegian Salmon Imports Before Tariff Decision

Sweden's IT Sector Sees Reduced
1 MIN READ

Sweden's IT Sector Sees Reduced Work Hours and Pay Raise

Service Sector Slows as Index
1 MIN READ

Service Sector Slows as Index Drops Below 50 in Sweden

Kristersson Urges Action Over US
2 MIN READ

Kristersson Urges Action Over US Tariffs, Calls for EU-US Trade Talks

Economist Urges Swedish Savers to
2 MIN READ

Economist Urges Swedish Savers to Hold Steady Despite Tariff Impact

Stockholm Stocks Plunge 3.4 Percent
2 MIN READ

Stockholm Stocks Plunge 3.4 Percent After Trump's Tariff News

Stock Market Faces Uncertainty After
2 MIN READ

Stock Market Faces Uncertainty After Trump's Tariff Announcement

Food Prices Stabilize as Supermarkets
3 MIN READ

Food Prices Stabilize as Supermarkets Compete for Shoppers

EU Prepares Countermeasures as US
2 MIN READ

EU Prepares Countermeasures as US Tariffs Threaten Global Economy

Gold Prices Soar to Record
1 MIN READ

Gold Prices Soar to Record Highs Following Trump's Tariff News

Colombia Plans to Acquire Swedish
1 MIN READ

Colombia Plans to Acquire Swedish Gripen Fighter Jets