Volkswagen Douses Yet Another Flame

Volkswagen and its employees were affected by a dispute with the suppliers and went on the affect the production of its Golf and Passat models.

Two of its suppliers, CarTrim and ES Automobilguss, who supply car seats and iron cast for the gearbox respectively, were in dispute with Volkswagen. After a marathon talk running for about 20 hours, the dispute has been settled and the suppliers have resumed their parts supply.

With the diesel emission scandal affecting Volkswagen with profits due to payoff to customers and governments around the world, the dispute with suppliers further threatened the VW's profitability.

As many as 28,000 workers at Volkswagen plant in 10 German factories were affected with the working hours and the production of the Golf and Passat models were affected as well.

Volkswagen said the suppliers have agreed to start delivering the parts and the plants which have been affected will gradually start production.

The new deal would see the suppliers working with VW for another six years and Volkswagen will be able to source parts from other suppliers over time.

Volkswagen was not available for comments on the settlement of the dispute based on the report.