VW Avoids Most Work-Hour Cuts Over Supplier Dispute

Volkswagen AG says a variety of unspecified “flexiblization” measures will enable it to avoid cutbacks for almost all of its 28,000 hourly workers in Germany.

Earlier this month the company reported that a dispute with a supplier was disrupting operations at six factories in Germany and interfering with production of its popular Golf hatchback and Passat midsize cars. Last Tuesday it resolved the impasse, which involved Prevent DEV GmbH’s Car Trim and ES Automobilguss units.

VW says only one of its factories—its Passat assembly plant in Emden—has requested an undisclosed period of short-time operations.

Component facilities in Braunschweig (Brunswick), Kassel and Satzgitter were able to resume production immediately, according to the company. VW says its Golf/Passat assembly plants in Wolfsburg and Zwickau expect to avoid work-hour reductions.