Ending marathon talks, German carmaker Volkswagen and two of its suppliers of crucial components have reached an agreement to end days of production disruptions at several VW plants across the country.
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It said the parties had agreed not to disclose details of the agreement.
According to reports one of the supplier makes seats and the other produce parts of the gearboxes.
Company said the stoppages in production would affect 27,700 employees.
Top-level negotiations between VW and the two Prevent DEV group suppliers that began at about 1100 GMT on Monday and continued through the night failed to yield a breakthrough, spokespeople for VW and the suppliers said.
Faced with billions of euros of costs from its emissions scandal, VW had previously indicated it would seek price cuts from its suppliers. The order canceled by VW involved a $565 million deal with Car Trim that was scheduled to start next year, a person familiar with the matter said last week.
The shutdown comes as first-half sales at VW’s namesake brand slumped 0.8 percent and operating profit in the period tumbled 38 percent. In others, they went on to short-time working on other jobs within the plants. Prevent Group did not immediately respond to a request for comment. Through his Halog GmbH and Cascade International Investment GmbH holding companies, Hastor has accumulated a 15.2 percent stake in German vehicle-seat manufacturer Grammer AG.
Both VW and Prevent “have a serious responsibility to address this problem and solve it as constructively as possible”, a spokesman for the federal economy ministry said on Monday.
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