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VW Golf Production To Be Halted Due To Supplier Dispute
Another VW plant in Emden, which produces the Passat, already planned to reduce production next week.
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“A Volkswagen supplier has suspended deliveries of components, leading to bottlenecks in production”, VW said.
Volkswagen AG factories in Germany are grinding to a halt after a supplier took the unprecedented step of cutting off the automaker as the two battle in court and engage in a public war of words about who’s to blame for the impasse.
A spokesman for the plant in Emden told Reuters that the measure came in response to supplier problems with parts manufacturer Prevent group.
The motor giant obtained a court injunction last week to compel the supplier – which VW did not name – to resume deliveries, but that has not been complied with.
A representative at Volkswagen’s Wolfsburg headquarters stated that shortening staff hours were a possible reaction to issues with supply however a decision has not been made yet.
The disagreement was so acute that ES Automobilguss has stopped delivering cast iron parts required to build gearboxes for the Volkswagen Golf, which has led to a temporary halt in production at the automaker’s main facility, located in Wolfsburg.
The GM spokesman didn’t say how long the reduced work hours would last, saying it would depend on United Kingdom demand for the vehicles. Car Trim, a sister company of ES Automobilguss, also stopped deliveries of seat covers earlier this month.
“VW’s treatment of suppliers is in no way acceptable and can leave every small provider in ruins”, Alexander Gerstung, an ES Automobilguss executive, said in the supplier’s statement.
Olaf Lies, Lower Saxony state’s economy minister and a VW supervisory board member, criticized the suppliers for not delivering parts.
According to the Reuters news agency, VW’s plan to shorten hours at the core factory in Wolfsburg alone would affect more than 10,000 workers.
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Prevent Group, which makes seat and transmission parts, is furious that VW backed out of a contract.