Chrysler, Vendors Struggle to Debug New Payment System

Chrysler Group LLC's flawed new invoicing system has delayed payments to some vendors by as long as four months, says the Detroit Free Press.

The system, dubbed PentaSAP, was developed by German IT company SAP. Chrysler concedes the system has been flawed from the start.

"I recognize and frankly apologize for the payment issues," says Jay Wilton, Chrysler's purchasing vice president. He tells the Free Press that 50 suppliers affected by the system have not yet been paid this year.

Chrysler encountered snags with PentaSAP last year when it rolled out the system for its top-tier suppliers. Wilton says problems multiplied this year when the system was expanded to cover about 1,500 indirect suppliers. The company has opened a call center to help resolve payment problems.

PentaSAP was designed to replace Chrysler's jumble of previous invoicing systems, including some that were 30 years old. It also is intended to mesh with a separate processing system adopted a few years ago by Chrysler's owner, Fiat SpA.