The dispute affected about 28,000 workers at six of the auto maker’s ten German factories on Monday when it halted production of the top-selling Golf and Passat models, as well as assembly of engines, gearboxes and emissions systems.
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Prevent Group will restart deliveries as soon as possible, and the factories affected will return to normal production on a step-by-step basis, Volkswagen said in an e-mailed statement on Tuesday.
One of the supplier is called CarTrim, which makes seats, and other is called ES Automobilguss, which makes cast iron parts used in gearboxes.
The parties spent more than 20 hours negotiating a resolution, according to Reuters.
The suppliers had wanted compensation after VW cancelled contract which they said had caused them losses of tens of millions of euros.
27,700 workers at six plants in Germany were affected by the dispute but the automaker said the suppliers will now resume deliveries. They didn’t release any details and spokesmen declined to comment on the agreement when contacted by Bloomberg.
Volkswagen said last week that it would have to suspend production of the Golf and Passat at the Wolfsburg and Emden plants in Germany for around a week because the suppliers weren’t delivering parts.
The vehicle giant obtained court injunctions ordering the two suppliers to resume delivery in early August.
Analysts at Commerzbank estimated the stoppage could cost the firm €70-million (R1,07-billion) a week.
The bare-bones announcements, which were put on the company’s official Twitter feed several hours after rumors of a deal leaked to the German media, came only after the German financial regulator said it is looking into Volkswagen’s failure to communicate to the markets over its dispute with the its Bosnian-owned supplier Prevent Group and its German arms.
Employees of the company “became victims of a conflict that was needlessly fought out on their backs”, Weil said.
But Professor Ferdinand Dudenhoeffer of the University of Duisburg-Essen said that “the real reason for this farce is in VW’s purchasing system”.
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Shares in VW immediately jumped on news of the deal, gaining around 2,2 percent to 122,7 in morning trading in Frankfurt – outstripping the DAX index’s gain of 0,65 percent.
