UPDATE: VW’s Supply Problems Spread in Germany

Volkswagen AG’s dispute with suppliers has widened production halts to six of its factories in Germany, affecting nearly 28,000 workers.

The problem began earlier this month when two units of Prevent DEV GmbH stopped shipping seat and transmission parts in a dispute over a cancelled supply contract. The units, Car Trim and ES Automobilguss, reportedly have demanded €58 million ($66 million) in compensation.

Prevent has appealed a court order to resume deliveries, and VW resumed talks with the company's affiliates today. In the meantime, VW has shortened or suspended operation at:

• Brunswick (components)
• Emden (Passat midsize sedans)
• Kassel (transmissions and exhaust systems)
• Salzgitter (engines)
• Wolfsburg (Golf hatchbacks and Passats)
• Zwickau (Golfs and Passats)

Separately, Prevent DEV also is in a legal battle with Daimler AG over a supply contract canceled by the carmaker three years ago. News reports in Germany note the disputed €40 million ($45 million) does not involve the supplier’s Car Trim or ES Automobilguss units and has not led to supply problems.