Volkswagen will cut hours for 10,000 workers in Wolfsburg amid supplier row

Volkswagen will slash working hours for over 10,000 personnel at its Wolfsburg base and decrease output at two more German sites, a source close to the business said, as the automaker deals with supply problems brought on by a parts maker not keeping to delivery dedications.

Europe’s biggest car manufacturer had stated on Wednesday that production of its top-selling Golf model at Wolfsburg was being struck due to the fact that supplier ES Automobilguss GmbH has stopped providing cast iron parts required to make gearboxes.

A representative for ES Automobilguss stated by email: “Our consortium remains in a legal disagreement with Volkswagen and is obliged keep confidentiality.” He provided no more details.

A representative at Volkswagen’s Wolfsburg headquarters stated that shortening staff hours were a possible reaction to issues with supply however a decision has not been made yet.

The plans to reduce hours at the Wolfsburg factory which uses 60,000 individuals marks the newest escalation in a supplier row that is causing problems in running business while Volkswagen attempts to recoup from its diesel emissions scandal.

Remaining 2 plants impacted by shorter working hours are Volkswagen’s gearbox-making center in Kassel and an auto-assembly site located in the eastern German city of Zwickau, according to the individual.