Thursday, August 18, 2016

For several days: delivery stop forcing VW Golf production in standstill – THE WORLD

It’s a David and Goliath battle – in which David lands some very sensitive Results: Because of the giant Volkswagen dispute with a supplier, are in several VW plants in the coming days some production lines shut.

The supply stop forcing the production of the model Volkswagen Golf at the Wolfsburg parent plant of the car manufacturer for several days in the knee. According to an internal memo VW has already informed its delivery partners about the imminent closure of the Golf production from 20 to 29 August. A VW spokesman confirmed the letter on Thursday, had first “” reports on that.

In Lower Saxony Emden are already around 8,000 staff carmaker working short – initially scheduled for five days. became known on Thursday that VW will probably apply for reduced working hours for employees in Wolfsburg, Zwickau and Kassel. Overall, more than 20,000 employees would then be sent on forced leave -. Only 10,000 in Wolfsburg

“Since the development is not foreseeable at present, we check for parts of the production at the sites in Kassel, Wolfsburg and Zwickau increase the flexibility of working time “, said a spokesman. This could also mean short-time working.

in Emden plant already missing for days seats to incorporate them into the Passat manufactured there. The actually come from a VW subsidiary, but that takes its seat covers again by Car Trim GmbH, a small company in Saxony Plauen, and for some time simply does not deliver more to Volkswagen.

problems in the supply

It is a bizarre dispute, which will be played in court, but so far has no solution in sight. Here VW has fought for an injunction against Car Trim before the Landgericht Braunschweig. The judge already decided on August 12 after a hearing that Car Trim must continue to provide seat covers on VW – at least to 5 May 2017. The only problem is: Car Trim adheres not loud VW to the order of the court.

Instead, now also supplies the ES Automobilguss GmbH no longer as agreed transmission parts at the Wolfsburg manufacturer. Both companies – Car Trim and ES Automobilguss – are connected to the Prevent Group. For the group of companies that has just as VW headquarters in Wolfsburg, includes numerous small companies, which supply the automotive industry parts.

comes through the delivery stop of the transmission part manufacturer it now also affecting other VW plants. Along with its headquarters in Wolfsburg and Emden location and production lines in Kassel and Zwickau are affected. In addition to the Passat, it is now also in golf delays.

Even against ES Automobilguss VW has applied for an injunction and get awarded. But because the judges who issued the order that ES Automobilguss must further provide, without a hearing, the company was able to provide with a contradiction that the disposal is not enforceable currently. It is now, according to a spokesman for the regional court only on August 31 to a hearing. Until then, VW do nothing to force the parts manufacturer for delivery.

Excessive and unfounded statement

Unlike the looks in upholstery. In theory, the decision is enforceable, said the court spokesman. This means that VW could instruct a bailiff trying to seize the promised seat covers directly from Car Trim and handed over to VW. But that was only a theoretical possibility, according to legal circles. It is still unclear whether VW has other options, such as penalties to enforce compliance with the disposal. Car Trim has however still a month to insert an opportunity against the decision before the Higher Regional Court of Braunschweig. So far this is not happening. At Volkswagen we checked meanwhile if another company can provide the necessary parts.

In the case turns on a terminated agreement for an originally planned joint project VW with Car Trim. When Landgericht Braunschweig states Car Trim had at the hearing argued among other things that there is a right of retention for the seat covers, because “from an other failed project” with VW have an open claim itself.

from VW circles it is said that the Wolfsburg-based group had in fact terminated the contract for a future project during the development phase. While Volkswagen had offered to replace the dismissal damages, but then a completely exaggerated and unsubstantiated statements of Car Trim had been placed. To which one fights at now.

A complex network of companies

has with an escalation like now made delivery stop after decades of close cooperation with VW but nobody expected. In the environment of Volkswagen it is, both the termination of the contract, as well as the trend of recent days have something to do with that at the Prevent Group last year a change of control had occurred and now other people have the final say.

the management at the suppliers want to say anything about all this. In ES Automobilguss you ask for your understanding that we currently can not speak because of the ongoing legal proceedings. In Car Trim only accepts an external co-worker calls and aligns that the manager this week was unreachable. The Munich law firm Bub Gauweiler, the Car Trim is represented in litigation with VW, makes inquiries unanswered.

The Prevent Group denies on request even, that they had something to do with Car Trim. In fact, one comes across a complex network of companies, if one examines the owner of ES Automobilguss and Car Trim. While ES Automobilguss majority of Bloukran Ohlanga Capital is holding, is the registered owner of the Car Trim the Parramatta Capital Holding in the commercial register. Both companies are based at the same address as the Wolfsburg Prevent Group. CEO of Parramatta Capital Holding is also Kenan Hastor, who was CEO of Prevent DEV GmbH until a few months ago and still directs the Prevent Holding. Hastor would not currently comment on the dispute with VW, said a Prevent employee.

As this is a power struggle between VW and Car Trim, are other manufacturers not affected. “We currently have no supply problems, neither with the Prevent Group, even with Car Trim” said a Mercedes spokesman on request. Daimler is next to VW a second major customer of Car Trim.

That Create suppliers with manufacturers and even go so far that the customer’s production resting partially, is extremely unusual. “There is a power asymmetry between producers and suppliers,” says Stefan Bratzel from the Center of Automotive Management (CAM). “The manufacturers determine the rules of the game, because they have the controls.” The trader risked in a confrontation not only that he will not get more repeat business, but also that the manufacturer submits claims for damages due to loss of production.


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