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August 22, 2016

VW outlines supplier dispute impact on plants

Volkswagen Group has provided more detail on the impact of halted parts supplies on production at several of its plants. The company is in dispute with some suppliers after it terminated contracts last week.

Volkswagen Group has provided more detail on the impact of halted parts supplies on production at several of its plants. The company is in dispute with some suppliers after it terminated contracts last week.

Volkswagen said that although Braunschweig District Court has issued injunctions obliging the suppliers to resume deliveries, the suppliers have "not as yet met their obligations". Volkswagen said it continues its efforts to reach agreement with the suppliers.

However, the company also said that it is making arrangements for various "flexibilisation measures extending as far as short-time work".

The measures affect the following plants:

  • Emden: Passat production, August 18 – 24, number of employees affected: approx. 7,500.
  • Wolfsburg: some segments of Golf production, August 22 – 27, number of employees affected: approx. 10,000.
  • Zwickau: Golf and Passat production, August 22 – 26, number of employees affected: approx. 6,000.
  • Kassel: some segments of transmission and exhaust systems production, August 25 – 29, number of employees affected: approx. 1,500.
  • Salzgitter: some segments of engine production, August 24 – 30, number of employees affected: approx. 1,400.
  • Braunschweig: some segments of chassis components and plastic parts production, August 22 – 29, number of employees affected: approx. 1,300.

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