Volkswagen Production to Resume After Reaching Deal with Suppliers

A dispute with suppliers recently interrupted production at several Volkswagen plants in Germany, but now Automotive News reports that a deal has been reached and that normal production will resume.

Unfortunately, Automotive News reports that the parties have agreed not to disclose details of the agreement that took 20 hours to reach.

The dispute affected six of Volskwagen’s 10 German factories: Emden, Wolfsburg, Zwickau, Kassel, Salzgitter, and Braunschweig. In all more than 28,000 VW employees were affected by work stoppages.

The dispute was with two Prevent DEV group suppliers: CarTrim and ES Automobilguss. The first makes seat covers and the latter produces cast iron parts for gearboxes.

Volkswagen has been accused of demanding too much for too little from its suppliers. The embattled manufacturer has been on a mission to reduce costs in the wake of the emissions scandal and reports suggest that this dispute was related to cost cutting.

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