Sunday 26th Mar 2017 - Logistics & Supply Chain

Volkswagen in deal to end supplier dispute

Volkswagen is understood to have come to an agreement with two suppliers this morning (23rd August) following a halt in component deliveries that interrupted production at several plants.

Volkswagen The resolution of the dispute was revealed in a report from Frankfurt by the “Financial Times”.

Six plants have been affected including Wolfsburg, Emden and Zwickau which are involved in production of the Golf and Passat models.
The two suppliers, CarTrim and ES Automobilguss, have been seeking compensation over cancelled contracts.

Volkswagen set out the impact of the interruption to deliveries in a statement on Monday (22nd August). It said that although Braunschweig District Court has issued injunctions obliging the suppliers to resume deliveries, the suppliers have not as yet met their obligations.

“Volkswagen continues its efforts to reach agreement with the suppliers. Given that further developments are not foreseeable, Volkswagen is making arrangements for various flexibilisation measures extending as far as short-time work.”

The measures affect the following plants:
Emden: Passat production, August 18 – 24, number of employees affected: approx. 7,500.
Wolfsburg: some segments of Golf production, August 22 – 27, number of employees affected: approx. 10,000.
Zwickau: Golf and Passat production, August 22 – 26, number of employees affected: approx. 6,000.
Kassel: some segments of transmission and exhaust systems production, August 25 – 29, number of employees affected: approx. 1,500.
Salzgitter: some segments of engine production, August 24 – 30, number of employees affected: approx. 1,400.
Braunschweig: some segments of chassis components and plastic parts production, August 22 – 29, number of employees affected: approx. 1,300.

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