View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 25, 2016

Berlin hails supplier deal reached with Volkswagen

Germany's Federal government has welcomed the agreement reached between Volkswagen and two of its suppliers, which threatened production at six of the automaker's domestic sites.

Germany’s Federal government has welcomed the agreement reached between Volkswagen and two of its suppliers, which threatened production at six of the automaker’s domestic sites.

The almost week-long row erupted following a dispute between Volkswagen and its CarTrim and ES Automobil Guss suppliers, causing disruptions at six of the automaker’s plants across Germany.

Volkswagen’s latest travails attracted the attention of the Economics Ministry in Berlin as the dispute could have seen up to 28,000 staff go to short-time working, a procedure which would have triggered German’s Federal Employment Bureau looking at picking up the tab.

“The agreement between Volkswagen and its suppliers are business processes and decisions, which we do not comment on,” said a statement sent to just-auto from the Economics Ministry in Berlin.

“But of course we welcome the agreement itself and the re-start of production is good news for the employees.”

Eastern Horizon Group – owner of CarTrim and ES Automobil Guss – confirmed a deal had been hammered out between all parties – although details remain sketchy apart from to note supplies would start flowing again.

“The content of the agreement has not been disclosed,” noted Eastern Horizon. “The suppliers take deliveries to Volkswagen shortly and production in VW continues accordingly.”

Volkswagen was not immediately available for comment.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto