VW Cancels Contracts with Troublesome Bosnian Supplier

Volkswagen AG has abruptly canceled all contracts with a Bosnian supplier that disrupted the carmaker’s production in Germany two years ago, Automobilwoche reports.

Prevent Group complains it was illegally given only one day’s notice before its contracts were nullified two weeks ago. The company, which VW has honored in the past as a supplier of the year, says it may take legal action.

Prevent operates eight plants in Germany, including facilities that have supplied VW with seat covers, transmission cases and other components. In 2016, Prevent halted shipments to six VW factories in Germany after VW suddenly canceled an order.

Prevent’s move disrupted production at three VW assembly plants and affected thousands of workers for several days. Prevent claims that VW’s “failed procurement policy” led to the previous dispute and is being repeated now.