Volkswagen given green light to seize car components from supplier

by SpeedLux
Volkswagen Golf GTI images

The state court of Lower Saxony has ordered the companies Car Trim and ES Automobilguss to deliver the parts to Volkswagen so that it can continue the manufacture of its Golf cars, Spiegel noted.

ES Automobilguss has actually appealed the decision, however will nonetheless be forced to abide by the order in the meantime.

The order tells that Volkswagen can send trucks to the provider and with the support of bailiffs seize the parts it requires to resume production, something that has actually never ever taken place before the German vehicle market.

The background to the disagreement remains entirely uncertain, with both sides declining to talk about why the parts have not been provided.

The disagreement has actually caused production of the automaker’s compact Golf model being stopped for several days in the Wolfsburg headquarters, where 60,000 individuals are employed.

An internal email discussed that Volkswagen would not be producing the Golf vehicles at least from August 20th and 29th, with a Volkswagen spokesperson confirming this, as per N-TV.

Die Welt has noted that ES Automobilguss GmbH is having a legal conflict with Volkswagen and has stopped providing the cast iron required to make gearboxes. This caused huge scarcities and congestion in the production process. Another supplier, that makes fabrics for car seats, had likewise stopped delivering to Volkswagen.

These disputes have already caused employees being asked to work part-time or take required holiday in several of the firm’s plants, as reported on Thursday.

At a factory in Emden, 7,200 of the overall 9,000 workers have begun to work part-time due to missing out on parts, a measure prepared to last up until August 24th.

The Wolfsburg plant in addition to two others, in Kassel and Zwickau, will also be impacted by the problems. In overall, 20,000 Volkswagen employees are either currently working shorter hours or are anticipated to do so quickly, with the information presently in discussion at the Federal Employment Agency.

The auto giant stated it obtained a court injunction recently to oblige the supplier to resume deliveries, but that it has “not been complied with”. Volkswagen was prepared to “forcibly” make sure the resumption of deliveries, the Süddeutsche Zeitung reported, making use of all possible legal methods.

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