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VW says six plants hit by supplier dispute

Monday, August 22, 2016 - 01:08

Volkswagen says it's facing production delays at more than half its German plants because of a row with two suppliers. As Laura Frykberg reports, the dispute could cost the automaker tens of millions of euros on top of the cost of the emissions scandal.

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Another diversion for Volkswagen. The carmaker has put the breaks on making vehicles at several of its German plants. A move that could cost the company millions of euros. (SOUNDBITE) (German) VOLKSWAGEN BRAND HUMAN RESOURCES CHIEF, MARTIN ROSIK, SAYING "We have been working to keep the production delays as small as possible. It has not been completely successful. We have therefore applied for shortened, flexible working hours. This will impact about 27,000 employees, of that 20,000 are in the car production plants." It's all down to Volkswagen not getting the parts it needs from two of its suppliers. They're refusing to work with the company, until they get compensation for a contract they say was ended without sufficient explanation. Legal threats to force them to resume deliveries have so far failed. VOLKSWAGEN BRAND HUMAN RESOURCES CHIEF, MARTIN ROSIK, SAYING: "We are intensively working on a solution and I hope that we will soon have a good commercial solution." That's what Germany's Economy Minister wants. He's called for a swift end to the dispute, which couldn't have come at a worse time for Volkswagen, already dealing with a multi billion dollar emissions scandal.

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VW says six plants hit by supplier dispute

Monday, August 22, 2016 - 01:08