Volkswagen cuts ties with seat covers supplier
09/04/2018
The problems arose in August 2016 when Prevent accused Volkswagen of placing unacceptable conditions on its suppliers. It came after 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 was forced to halt production at six of its sites for a week.
After the recent development, Volkswagen said it had taken “appropriate steps”, pointing out that it relies on "predictable and trusting cooperation with its suppliers at all times." It added that it regularly reviews its business relationships in order to minimise the negative effects of potential production disruptions.
For its part, Prevent labelled Volkswagen’s actions “illegal” as it only gave one day’s notice. It is said to be considering legal action as the move has led to job losses and shorter working hours for its employees.
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