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Germany: Volkswagen holds talks with suppliers after halt in production01:27

Germany: Volkswagen holds talks with suppliers after halt in production

Germany, Wolfsburg
August 22, 2016 at 09:54 GMT -00:00 · Published

Volkswagen will seek to end a dispute over car part deliveries that has hurt its automobile production by holding talks with its two former component suppliers in Wolfsburg, Monday.

The German automobile-making giant will negotiate with its former suppliers, ES Automobilguss and CarTrim, in an attempt to ensure the continuation of their collaboration, which ended in early August following a legal dispute. VW managed to secure a temporary injunction on August 12, ensuring that both suppliers continued to send their products to VW, but was met with an appeal shortly after. The appeal resulted in VW halting production, cutting pay and laying off staff.

Car seat supplier CarTrim and cast iron parts and gearbox supplier ES Automobilguss stopped delivering their products to VW on Friday, accusing the company of having inexplicably terminated contracts and offering no compensation in return. Both suppliers are demanding financial compensation from the car manufacturers due to alleged loss of revenue.

Germany: Volkswagen holds talks with suppliers after halt in production01:27
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Volkswagen will seek to end a dispute over car part deliveries that has hurt its automobile production by holding talks with its two former component suppliers in Wolfsburg, Monday.

The German automobile-making giant will negotiate with its former suppliers, ES Automobilguss and CarTrim, in an attempt to ensure the continuation of their collaboration, which ended in early August following a legal dispute. VW managed to secure a temporary injunction on August 12, ensuring that both suppliers continued to send their products to VW, but was met with an appeal shortly after. The appeal resulted in VW halting production, cutting pay and laying off staff.

Car seat supplier CarTrim and cast iron parts and gearbox supplier ES Automobilguss stopped delivering their products to VW on Friday, accusing the company of having inexplicably terminated contracts and offering no compensation in return. Both suppliers are demanding financial compensation from the car manufacturers due to alleged loss of revenue.

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