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.
