VW to Resume Negotiations to With Parts Suppliers on Monday
August 21 2016 - 1:57PM
Dow Jones News
By Zeke Turner
BERLIN -- Volkswagen AG will resume negotiations Monday to
resolve a dispute with parts suppliers that has led to reduced
working hours for thousands of its employees across Germany.
About 20,000 workers will be affected by shorter working hours
in the coming week across different plants because of a shortfall
in parts used in models like its Golf and Sportsvan, Volkswagen
spokesman Christoph Adomat said Sunday.
He said that both sides agreed to break off talks late Friday
and continue discussions on Monday. The suppliers, Car Trim and ES
Automobilguss, have denied blame for the disruption. They said they
suspended delivery because Volkswagen canceled contracts without
explanation or compensation.
Volkswagen, still sorting out an emissions scandal that erupted
nearly a year ago, said it would scale back production of its Golf
model later this year to adjust for previous output.
Confirming German media reports over the weekend, Mr. Adomat
said the company would scratch eight days of production from the
Golf manufacturing schedule across October and December, the time
it takes to produce about 15,000 Golfs.
The adjustment, he said, was aimed at normalizing output after
Volkswagen had run production during the summer holidays.
"It's a completely normal procedure that, in the middle of the
quarter, you reflect on your production cycle going forward," Mr.
Adomat said.
He declined to say whether Volkswagen had reduced the total
number of Golfs it was planning to make this year.
Volkswagen is in the midst of a restructuring triggered largely
by the disclosure by U.S. authorities last September that the auto
maker had equipped diesel engines with software that enabled
vehicles to cheat on emissions tests. The auto maker later admitted
the software had been installed in nearly 11 million vehicles.
(END) Dow Jones Newswires
August 21, 2016 13:42 ET (17:42 GMT)
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