Volkswagen Suspends Golf and Passat Production Due to Supplier IssuesAuto News
Production of the Volkswagen Golf and Passat have been halted at it's main production plant in Germany as Volkswagen enters a fierce legal batle with suppliers. This whole week, the plant will have to stop production of the car as suppliers are refusing to provide specific components. The Golf and its variants represents roughly 500,000 cars out of the over 815,000 unit total annual production for the plant last year. The problem has also spread to other factories beyond Wolfburg, including Emden, Zwickau, Kassel, Salzgitter, and Braunschweig.
On the 12th of August, Volkswagen secured temporary injunctions against ES Automobilguss and Cartrim to resume supply delivery as per their contracts. These companies supply cast gearbox components and seat covers respectively, both of which are critical in the production of these models. Unfortunately these injunctions were appealed by the suppliers, forcing Volkswagen to slow production. Despite a judge ordering these companies to resume supplies on Friday, as of yet they have refused to provide components.
But this standoff comes as a reaction to Volkswagen's supposed cancellation of supplier contracts without forewarning or compensation, and the suppliers are refusing to co-operate as they aim to protect the interests of their workforce. Various other reports have stated that Volkswagen has been seeking concessions from suppliers amounting to several billion Euros in an effort to recover from the financial hit due to dieselgate.