Production Delays Faced by Volkswagen Amidst Dispute

Volkswagen has stopped its production at a number of factories across Germany, which has affected the output of Passat and Golf models amidst a dispute with a pair of suppliers.

The two suppliers, one that makes seats and the other parts that are used in gearboxes, stopped delivering to VW over a problem with their contract.

The production of parts and cars has been halted already at four of VW’s plants and will stop at another two later in the week.

The automaker said interruptions to its production would affect staff members.

Although the court has issued a pair of injunctions that oblige the suppliers to start deliveries, the two suppliers have yet to do so. Volkswagen is continuing efforts to reach some agreement with the two suppliers said a prepared spokesperson from the carmaker.

The suppliers involved include CarTrim, which is a maker of seats and ES Automobilguss, a maker of gearboxes cast iron parts.

They both demand compensation from the carmaker because they said their incomes had been hit when the carmaker cancelled one of its contracts.

However, VW said it was continuing efforts to come to an agreement with its suppliers.

The company announced that the stoppage of production would not affect any cars that already have been ordered. If there is an effect on production in the future, it will depend on the length of the dispute.

There already has been the stoppage of some production in Wolfsburg, which is wear Golfs are made and at the Zwickau where the automaker produces Passats and Golfs. Production is scheduled to start again late this week.

Production came to a stop as well at Braunschweig, where chassis parts as well as plastic parts are made, but should begin ago a week from today.

Later during the week, production will come to a stop in Salzgitter, where engine production takes place and in Kassel where exhaust systems and transmissions are produced.

In what VW said was an issue that was unrelated, production at Emden stopped. Passats are made there, but the production stopped during the week last week and is scheduled to resume this Wednesday.

In certain cases, the employees have gone home, but in others, the employees started to work other types of jobs within the plants.

On Monday, the Economy Ministry of Germany called on both VW and its suppliers to bring to an end their dispute.