Tuesday, August 23, 2016

Trader: As the Prevent dwarfs the giant VW defeat – THE WORLD

The truck with the parts urgently needed to roll back the tapes at Volkswagen drive again. The publicly discharged conflict between the car company, and the two suppliers from the Prevent Group is completed. The Golf and the Passat, whose production level since the beginning of the week, remounted

The parties to the dispute have agreed on a compromise -. And explains each page to have decided the conflict itself. In the public perception, at least Prevent is for that reason the winner in this struggle, because it was the trader ever succeeded in wresting the huge VW Group something. Often that succeeds the little ones in the fight with the big do not.

The price Prevent and its offshoots eventually have to pay for it, however, could be high. For it is not the first time that these suppliers group has created with a manufacturer. “We will have to organize our shopping differently,” says an auto executive. A dependence on one manufacturer in the supply of parts it could no longer give.

Officially only one drought declaration

with details on the compromise to keep both sides back striking. The official release after 19 hours of marathon negotiations precipitates thin: In four common phrases, Volkswagen and the parent company of the two suppliers Car Trim and ES Automobilguss agreed. We have found a solution for the dispute. “The suppliers take deliveries of Volkswagen short again,” it says. “The affected sites prepare accordingly gradually before the resumption of production.” More stands not

If you read between the lines, then sound the statements, as the suppliers would have at least partially enforced -. As if the giant VW in important points yielded. The suppliers and the Wolfsburg-based group would continue to work, said a spokesman for the group Prevent belong to the Car Trim and ES Automobilguss. They had agreed on a “long-term partnership”. In future one wants to talk “often and on time” with each other in order to avoid similar situations in the future

Spoken there had been no shortage in the past few days. – but only after the dispute had escalated. After the negotiations were adjourned without result on the night of Saturday, the representatives of VW and suppliers met on Monday afternoon at 13 o’clock again in Wolfsburg. Without prolonged interruption was then negotiated until Tuesday morning at eight o’clock. Only then was the compromise.

partial success for the Prevent Group

You have the dispute “also atmospherically “very well resolved, it was the part of the trader. One cooperation, as they had been kept for years prior to the dispute, nothing stand in the future in the way.

that VW and suppliers to continue to cooperate in future, , the Prevent group won at least a partial success. Finally, the delivery stop was triggered the termination of a development contract with Car Trim by VW. We had agreed with neither the quality nor with the delivery deadlines, says Volkswagen. The order was withdrawn, Car Trim was out.

Although the carmaker offered by its own account, to replace the damage resulting from the termination. “We have asked for a list of inputs and their costs, but never get,” says one VW executive. Instead Prevent have placed a demand of 56 million euros on the table after some back and forth. Without documents without comment, according to Wolfsburg. “We have of course not been paid.”

Clever move by the Prevent Group

What does a carmaker in this case he is charged not only not, he announces the supplier and ends the cooperation permanent. The major carmakers are there not squeamish. In the industry is quite clear who is in charge.

Prevent but hit upon a clever move. With seat covers as those produced by Car Trim, the VW Group can not to corner you, but probably in the supply of other parts. So the Car Trim transferred a portion of their claims on the ES Automobilguss, which also belongs to the Prevent Group, a sister company.

In the transmission case, the manufactures ES Automobilguss, VW can not do without. Although commonly taken in the auto industry on having two manufacturers as possible for all components, this was not the case with the housings. Prevent Volkswagen had the Automobilguss in hand. . “The move caught us cold” admits VW Manager

suppliers show strength: new chapter in the car industry

with Prevent it is the first time a supplier able to exist in a discharged publicly and in court conflict against an automobile manufacturer. The group, backed by the Bosnian family Hastor is has so opened a new chapter in the auto industry.

So far it had mainly to do the major manufacturers in addition to Bosch, Delphi, Conti or ZF Friedrichshafen with medium-sized companies, often family businesses. For the respective major customer was essential for survival.

The management pokered not, so as not to endanger the operation. The supply relationships were – grown over the years – albeit conflictual repeatedly. In addition to all discussion and the pressure to build the carmaker, there were a certain familiarity.

Prevent gets orders for 500 million

Prevent contrast plays by different rules. The strategy is based on longevity. The Bosnian family Hastor standing behind Prevent, has bought up their suppliers group. You juggle with several companies and can not be run by the automotive industry on a lead.

Last year, Prevent daughters laid already in South America with VW and Fiat Chrysler , then with Mercedes. Here Prevent is also compensation claims and struggles with the Stuttgart before the local district court. Largely silent.

noise? This is Wolfsburg’s probably not, and in the last clamoring escalated dispute they had now to make some concessions. There are longer-term supply – utilizes Prevent.

Whether the “long-term partnership” in orders reflects how the planned and then canceled, answered not a Prevent spokesman. After all, is allegedly a volume of half a billion euros. Representatives of suppliers in any event anxious not to jeopardize the outcome of the negotiations, one is happy to accommodate the business again.

End of cooperation was impossible

an immediate end to the co-operation would however probably not have been possible. For as dependent VW is at least of the transmission components of ES Automobilguss which partially stop production has shown equal in six plants, as the supply of castings forthcoming. Nearly 28,000 people were to be sent on forced leave, because at least in the short term was not a substitute for the transmission parts.

For the Car expert Ferdinand Dudenhöffer the Center for Automotive Research (CAR) at the University of Duisburg-Essen is Prevent a typical case of a supply group of new type. “For some time there are private equity and equity investments, and buying some ailing and weak little one,” he says. Also ES Automobilguss only a few months

In fact, belongs to the sphere of influence of the Prevent Group. “The business model is ausgefuchst” says Dudenhoeffer. “It’s not the nice medium entrepreneurs with family tradition, but smart investment bankers who work with internationally excellent law firms.”

carmaker must learn to deal with new rules

Legally and economically the bought-supply companies are independently and sent interleaved over holding companies, so a possible insolvency of a member company has no influence on the group, explained Dudenhoeffer. So could the previous medium-exercise “enormous impression”, but economically not be held responsible.

This challenge for the automakers is, however, long been known before the present delivery stop at VW. “It’s time for the automaker to recognize the new rules in the game,” says Dudenhoeffer.

If the purchase of the carmaker rather than changing the supply sector hiring, could the example of Prevent making school, fearing Dudenhoeffer. “If we find a case in which makes a global market leader with more than 600,000 employees of a 500-man Bude dependent, all rules of statistics suggest that more such cases lie dormant in the box.”

Because: “This example may not school make”

It should finally not always wait for a escalating dispute come, natural disasters or regional strikes could lead to the failure of a critical supplier, who then could paralyze the entire production. “The supposed dwarfs can bring Gullivers the car industry in distress,” says Dudenhoeffer.

The concern that the approach of Prevent take other suppliers an example could, also shares the policy in Lower Saxony. VW board and Prime Minister Stephan Weil said it was good that now an agreement had been made. He was pleased for the workers who now zurückkönnten back to their jobs. “They have become in the last few days the victims of a conflict that has been discharged on her back unnecessarily”, the SPD politician said.

Because criticized again the approach of the two suppliers. “It stays with me an uneasiness about the actions of the Prevent Group, which was not ready to go with the provisions of our constitutional state way of clarification in the courts.” The two companies have instead opened a major conflict with considerable damage. “This example may not make any school.”


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