Report: VW Paid €13 Million to Settle German Supplier Dispute

Volkswagen AG agreed to pay €13 million ($15 million) to settle a supplier contract dispute that hobbled six of the carmaker’s factories in Germany, according to the Sueddeutsche Zeitung.

Prevent DEV GmbH had demanded €58 million ($66 million) to compensate for retooling one of its factories to handle a €500 million order that VW canceled. The newspaper says VW also has agreed to continue buying components from Prevent affiliates for at least six years.

Neither company will confirm details of the settlement. But they do say in a joint statement that Prevent’s Car Trim and ES Automobilguss units will quickly resume parts deliveries to VW. The carmaker expects its affected plants will return to normal production on Monday.

The dispute affected 28,000 workers and disrupted output of VW’s top-selling Golf five-door hatchback and Passat midsize sedan. Reports put the cost of the shutdowns, which were announced three days ago, at about €100 million per week.