September 6, 2016 / 7:40 PM / a year ago

UPDATE 1-Volkswagen CEO says cannot rule out further production delays

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LINZ, Austria, Sept 6 (Reuters) - Volkswagen Chief Executive Matthias Mueller said on Tuesday he could not rule out further production delays due to problems with single suppliers.

Volkswagen has previously said it is reviewing its supplier and procurement strategy to avoid another dispute like the one that caused production slowdowns and even stoppages at six plants last month.

“I can never rule that out,” Mueller told reporters in the Austrian city of Linz when asked about the possibility of further production delays.

VW suppliers Car Trim and ES Automobilguss, both part of Bosnia’s Prevent Group, halted deliveries of seat covers and cast iron parts for gearboxes after VW cancelled a contract.

“This was a one-off occurrence, we normally have a very good relationship with our suppliers and that’s why I think we’ve got it under control... We don’t need to change (cooperation with our suppliers),” Mueller said. (Reporting By Shadia Nasralla; Editing by Ruth Pitchford)

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