VW Supplier Dispute Deepens in Germany

Volkswagen AG will halt output of Golf hatchbacks next week at its big factory in Wolfsburg, Germany, because of a dispute with two key suppliers. The disruptions also will affect a transmission facility in Kassel and a Passat assembly plant in Emden.

Media reports say VW will suspend output for five days because it can’t get transmission components and seat covers from two units of Prevent DEV GmbH. The Wolfsburg-based company is a diversified maker of fabrics, furniture, sail boats and vehicle interior components and hard parts.

Prevent’s CarTim and ES Automobilguss units say their refusal to ship parts stems from a dispute with VW about demanded price cuts and an unexpected contract cancellation. The carmaker is pursuing legal means to force deliveries.