Volkswagen solves the conflict with their suppliers after 20 hours of negotiations

volkswagen-conflicto-proveedores-solucio

Iniciábamos the week with the news of the break six of the ten factories of Volkswagen because of a dispute involving the manufacturer with two of its suppliers. A conflict that halted the production of two of its best selling models: the Volkswagen Golf and the Passat. Today it seems that the situation has been solved after 20 hours of hard negotiations among the three companies that took place throughout the early hours of Tuesday.

The resolution of the situation has been confirmed by the suppliers even though they have not disclosed the terms of the pact between these companies. The source indicates that this new agreement guarantees the continuity of these suppliers for at least another 6 years and the job of a 400 people.

CarTrim, in charge of the manufacturing of the seat covers, and IS Automobilguss, which supplies steel for the manufacturing of gearboxes, they provide to the German manufacturer after a dispute. Apparently Volkswagen had undone some contracts unilaterally, causing the loss of large revenues to these suppliers. A move they were not willing to let go of and calling for compensation.

volkswagen-conflicto-proveedores-solucio

The production of the Volkswagen Golf and Passat back to normal little by little, however, already have the collateral damage this incident, which although has lasted a short time, cost a lot of money. The situation comes at a tough time for Volkswagen, which is still trying to recover after the consequences of the scandal Volkswagen diesel. The manufacturer already announced that it would launch a series of cuts, including spending on vendors, in order to compensate the economic losses of the Dieselgate.

According to the experts, Volkswagen could lose about 100 billion euros of gross income, during these days not to mention delays in deliveries of their models of more volume, which may result in losses to customers that are not willing to wait so long and go to another brand. In addition, this break has also affected to other providers indirectly that have been accumulating stock.