Volkswagen said Monday that is suffering delays in production in six plants, including its main factory in Wolfsburg because of a dispute between the automaker and two of its suppliers.
The conflict with suppliers, two companies based in eastern Germany, is a drag on the group’s profitability. According to analysts of the Swiss bank UBS, the interruption of production for a week at the factory in Wolfsburg subtract about 100 million euros (112.89 million dollars) of gross profit to the German group.
Volkswagen Monday announced cuts in working hours of at least 27,700 employees.
“production at several plants has been halted by the halt in deliveries of components from outside suppliers,” Volkswagen said in a press release.
He added that his legal attempts to force CarTrim, a manufacturer of seats, and ES Automobilguss, a producer of parts required for gearboxes, to resume supplies have been unsuccessful.
the two auxiliary companies require compensation for the cancellation of a contract, which reduces their income by tens of millions of euros. VW said it continues to seek to reach an agreement with the two suppliers.
The company said it reduced shifts this week 10,000 workers joining the Golf model at its plant in Wolfsburg. An additional 7,500 employees will be affected at the Emden plant, where the Passat is produced, and more than 10,000 workers in Zwickau, Kassel, Salzgitter and Braunschweig.
The auto manufacturer is still suffering the effects of scandal pollutant emissions from several of its models and has implemented a drastic cost-cutting at its Volkswagen brand.
the German government urged the company to end its dispute with suppliers. (Reporting by Jan Schwartz. (I)
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