There is no peace for Volkswagen. The German auto giant has announced it will halt production for a few days at six German plants where some of the company's most popular models are built, including the Passat and Golf sedans. In detail, the working hours of approximately 27.700 workers will be cut by the end of August.
The decision comes as a result of the legal dispute between the company and two suppliers of key components (gearbox and seat covers), which have stopped deliveries to the automotive group.
"Although the Brunswick state court has issued temporary injunctions requiring suppliers to resume deliveries, so far that requirement has not been met," the automaker said in a statement.
For their part, the manufacturers of the components have appealed against the court's decision. Volkswagen has however announced that it would resume talks with suppliers next Monday. The group - said a spokesman - hopes "to obtain a result through negotiations", but the way to the court is already open.
The suppliers say VW has terminated several contracts with no warning or compensation, leaving them with no choice but to halt deliveries to protect their businesses and workforce.
A spokesman for Prevent, the parent company of the two companies, told the German business newspaper Handelsblatt that VW was imposing "unacceptable conditions" on its suppliers. The newspaper also reported that Volkswagen has been trying to secure concessions from all its suppliers worth several billion euros.
The factories affected by the production halt are Emden, Zwickau, Kassel, Salzgitter, Brunswick and a key site at the company's headquarters in Wolfsburg.
