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Supplier dispute hits Volkswagen production

Volkswagen Passat GTE 2016

A dispute which has led to two suppliers refusing to deliver parts is set to disrupt production at Volkswagen plants this week.

Production of Golf and Passat models at four plants, including the group’s headquarters in Wolfsburg, will be affected by the action by CarTrim and ES Automobilguss, according to the FT.

Production had to be reduced on Thursday due to a lack of seat parts at an assembly plant in Emden and a lack of gear boxes at a plant in Kassel, which affected operations at Zwickau and Wolfsburg.

The two Volkswagen suppliers – both owned by Prevent Group – stopped providing components to the factories earlier this month over a dispute, which the FT said revolved around an order which was cancelled by the German automotive giant.

Both companies were ordered to deliver components to VW “on demand” after Volkswagen took them to a regional court in Braunschweig over the matter, but both have since objected. 

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