Dispute with seat cover supplier disrupts Volkswagen production
26/08/2016
The German carmaker stopped manufacturing at its plants in Wolfsburg and Emden for a week and had to reduce the hours of its staff at other facilities. Nearly 28,000 workers have been affected.
The dispute was with supplier Prevent, who claim Volkswagen is placing unacceptable conditions on its suppliers. The car manufacturer had cancelled contracts with Prevent’s affiliate company Car-Trim, a supplier of seat covers. As a result, Prevent stopped delivery of seat covers as well as gearbox parts from another of its affiliates, halting production of models including the Passat and the Golf.
Volkswagen says the dispute has now been resolved and it expects production at its German plants to return to normal by August 29.
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