VW in Talks with Assembler Heuliez

Contract assembler Heuliez, which went into receivership this week, tells reporters it is holding discussions with Volkswagen AG about supplying replacement parts to the auto giant.

The French company, which is €10 million in debt, says such a deal could generate revenue of €20 million to €30 million annually.

VW declines to comment. The assembler's past customers have included Opel and PSA.

Heuliez's receivership filing was its third in four years. A French court has given the company six months to find an investor or face liquidation. The local press reports that two foreign investors are interested in the assembler but only if it wins a contract with VW.