VW Ends Supply Dispute with Crucial Supplier

Volkswagen AG has reached a deal with a key supplier to resume immediate parts deliveries in Germany, ending a disruption that affected production at six factories.

Details about the agreement, which was reached overnight after a 20-hour bargaining session, were not disclosed.

The dispute centered on the claims by two units of Prevent DEV GmbH that VW owed them a combined €58 million ($66 million) for abruptly cancelling supply contracts. The units halted deliveries of seat and transmission parts earlier this month.

VW says its affected plants will ramp up to normal production over the next several days. The dispute affected some 28,000 workers in Germany and cut production of the carmaker’s two most-popular models, the Golf hatchback and Passat midsize sedan.