Volkswagen Wolfsburg

Volkswagen halts Golf, Passat production in supply row

Volkswagen WolfsburgSix Volkswagen plants in Germany have been halted due to a row with suppliers that’s stopped the delivery of key vehicle components.

Car production at Wolfsburg, Emden and Zwikau has been interrupted, affecting production of both the Golf and Passat.

Engine, transmission, exhaust, chassis and plastic parts production facilities have also been halted due to the argument with suppliers: Volkswagen says a total of 27,700 employees have been affected.

The German giant has thus imposed “flexiblization” flexible working measures with the workforce that includes short-time work.

Ominously, Volkswagen says a resolution with the suppliers who have halted component deliveries may not come any time soon: “Further developments are not foreseeable,” says an official VW statement.

Currently, short-time working arrangements are in place just for August: the firm will reveal later whether this extends to September.

Thus far in 2016, Volkswagen has retained the title of Europe’s best-selling car manufacturer, with the Golf boasting a commanding lead over its rivals. All eyes will be on VW’s industrial relations team to ensure it can maintain this…

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