Volkswagen has initiated "steps" to ensure its supply chain

Volkswagen has initiated "steps" to ensure its supply chain

Volkswagen has issued an ambiguous statement appearing to substantiate earlier reports it has cancelled its contract with German supplier, Prevent, but without full confirmation.

The serious dispute with Prevent dates back to August, 2016, when 28,000 Volkswagen workers were affected by a halt in supplies from Prevent subsidiaries, ES Automobil Guss and CarTrim, but it appears the previously dormant disagreement has flared up once more.

"At all times, Volkswagen depends on reliable cooperation with suppliers in a spirit of trust," said a Volkswagen statement sent to just-auto from Wolfsburg.

"Existing business relationships are regularly reviewed accordingly, with the aim of minimising the adverse impact of any supply chain disruptions on our own production in the interests of our customers, workforce, dealers and other suppliers.

"In this case we have therefore initiated the corresponding steps."

It is unclear what the "corresponding steps" are but it may be Volkswagen has finally cut its ties with Prevent.

A spokeswoman for Prevent said it would provide further information, but at the time of writing that has not yet materialised.

An update from Volkswagen is expected later.

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