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VW against Prevent: All information about the supplier dispute

VW trouble with supplier
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K For almost two years the supplier dispute between VW and the automotive supplier group Prevent was quiet. At least in public. Legally, the feud lasted until it was decided by the Düsseldorf Higher Regional Court. And that in favor of VW: The extraordinary termination of the supply contract was legal, as Prevent had previously wanted to enforce a 25 percent price increase by means of extortion, so the reasoning of the OLG judges. There was a tacit threat of a delivery stop.

Previously, the Prevent Group sued VW for damages because the automaker had canceled several orders without notice. However, it is not entirely clear how much money was involved. Current media reports call the delivery contract “worth millions”. When the lawsuit was filed, however, there was talk of two billion euros in the industry.

Audi has to pay compensation to Prevent

Volkswagen subsidiary Audi was less fortunate with the verdict: The almost parallel dismissal by the Ingolstadt-based company was ineffective, since only an ordinary, but not extraordinary, termination had taken place. This was not provided for in the delivery contract. That is why Audi Prevent must compensate for the damage that has occurred and the amount still to be defined. The Düsseldorf judges did not allow an appeal against the judgment. Audi now wants to take action against this decision in order to be able to take the proceedings before the Federal Court of Justice after all.

Behind the Prevent group is the Hastor family - not very squeamish investors who, in August 2016, started a supplier strike by VW Have brought works to a standstill. Other legal proceedings are currently pending between the car company and the supplier. Among other things, in the USA, where it is said to be about $ 750 million in damages (around 680 million euros).

Supplier dispute in August 2016

The dispute between Volkswagen and Prevent escalated in August 2016: Prevent subsidiaries had interrupted the delivery of parts, so that at VW in Emden, Wolfsburg and Zwickau the production of Passat and Golf had to be cut back and in some cases also interrupted. Short-time work was carried out in Emden. After 19 hours of negotiations, VW and Prevent had agreed on a long-term partnership.

08/26/2016 - Failures largely compensated

After the agreement with the suppliers, the company was able to Short-time working will be averted in the five plants in Wolfsburg, Zwickau, Kassel, Salzgitter and Braunschweig, only for the Emden plantShort-time work was requested. VW wants to absorb the majority of the downtime with internal flexibility measures.

08/23/2016 - VW and suppliers settle dispute

After 19 hours of negotiations, VW and Car Trim and ES Automobilguss settled their dispute. According to the dpa, both parties are said to have decided on a long-term partnership. The delivery of parts should be resumed as soon as possible.

08/23/2016 - Works meeting at ES Automobilguss at 2 p.m.

According to information from the Süddeutsche Zeitung Today at 2 p.m., the 450 employees of ES Automobilguss will learn from the management during a works meeting how the dispute with VW will continue. Volkswagen and the Prevent Group started negotiations on Monday. The result is still open. At the same time, politicians criticize VW's plans to apply for short-time work benefits for the production downtime. 'Short-time work is not a strike fund for companies,' said CDU politician Karl Schiewerling of the Süddeutsche Zeitung. The federal government called on the negotiating partners to a quick agreement on Monday.

August 22, 2016 - 28,000 VW employees are affected
Due to the restriction of production at some VW locations According to VW, 28,000 employees are affected. Short-time work has been registered for the 10,000 employees at the main plant in Wolfsburg who produce the VW Golf there. In Emden, short-time work has been in place for 7,500 employees since Thursday. Assembly of the Golf and Passat is now also suspended in Zwickau. VW is also examining short-time work for the Braunschweig and Kassel locations.

August 22, 2016 - Daimler is also having trouble with Prevent
Prevent has also filed a lawsuit against millions at the regional court in Braunschweig Daimler pending, reports the 'Süddeutsche Zeitung'. The supplier is demanding compensation for orders that Daimler canceled in 2013. According to Daimler, the amount in dispute is only minor.

August 21, 2016 - Suppliers are demanding 58 million euros
Volkswagen and the Prevent group are negotiating according to information from the Süddeutsche Zeitung aktuell about the settlement of the dispute. Prevent demands a total of 58 million euros from VW. Volkswagen does not consider the sum plausible. Negotiations are to be continued on Monday.

August 19, 2016 - Supplier dispute with VW escalates

Because a supplier no longer supplies gearbox parts, VW cannot for the time being a Golf -Models manufacture more. Production in the main plant is suspended for several days. According to the court, VW has now achieved all the necessary conditions for the surrender of missing parts. For both parts manufacturers who, according to VW information, have stopped their deliveries in breach of contract, there is an injunction that is currently availableIs 'enforceable'. The Braunschweig Regional Court announced on Friday. The effectiveness of the two orders is already taking effect.

According to the announcement, the VW partners are threatened with fines of up to 250,000 euros. This penalty applies 'for every case of violation of the delivery obligation'. However, the communication did not specify the timing of these obligations. The court also names 'proper detention, to be carried out on the managing director of the defendant' as a possible consequence.

The Automobilwoche had previously reported that due to the supply problems that arose as a result of the legal dispute with two suppliers, Golf production had to be stopped for several days. According to an internal announcement, Volkswagen has already informed its partners that no cars will be built between August 20 and 29. A VW spokesman has confirmed a corresponding message from bild.de. The background to the dispute between Volkswagen and two suppliers is still unclear.

Passat production is also stalling

As the Hannoversche Allgemeine reports, Passat production in Emden had already stalled, because a subsidiary of the conglomerate Prevent no longer supplied seat covers. Now another Prevent subsidiary has apparently stopped supplying an important transmission component. Without this component, VW could not deliver a gearbox, as a spokesman for the plant in Kassel, which specializes in the manufacture of gearboxes, said. VW is therefore currently examining whether this part can also be obtained from other suppliers.

In Emden, VW has already applied for short-time work for 7,200 employees, the group may have to expand the measure massively: We are talking about more than 20,000 employees who could be affected in the end. Short-time work could soon also apply to the plants in Braunschweig, Kassel and Zwickau.

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