Volkswagen in Wolfsburg cut production by cutting supply of a supplier – euronews

last update: 08/19/2016

Euronews

Volkswagen reduce working time at its headquarters in Wolfsburg and two other German factories by the outage of one of its suppliers, a derivative of diesel scandal conflict. ES Automobilguss, a subsidiary of Prevent group and supplying iron gearboxes Golf model, does not accept cut prices as requested by Volkswagen.

“It’s not easy to imagine that anyone could block a company for delivery of parts,

especially if they have not yet been made,” considered from Frankfurt’s stock analyst and specialist setor Juergen Pieper, bank Bankhaus Metzler. “It is nothing more than a show of force. And something that has occurred to light. So I think, in the end, both sides will reach an agreement in one or two weeks. For now is the closely monitor and losses of both companies increase day by day. “

Without official confirmation, Volkswagen plans to apply ten thousand of its workers in Wolfsburg this reduction in working hours. And the measure also studied in Kassel and Zwickau plants. The problem also extends to another supplier, Car Trim, which supplies the seat covers. Those responsible manufacturer require these companies to lower their prices to meet the litigation over the scandal diesel.