Prevent, a relatively small but important suppliers of the Twelve-brand manufacturer Volkswagen has set the supply of components. It’s about car seats and gear parts that produce the Prevent daughters Car Trim and ES Automobilguss and are missing from the production. Therefore, production in several VW plants must rest next week, including at the Wolfsburg headquarters. VW is expected to send a total of tens of thousands of employees in short-time working. Whether price or quality issues are the cause of the delivery stop, is controversial. Basically include manufacturer and supplier contracts from a model cycle. With each new model, lower prices and / or higher quality are expected and agreed by suppliers generally.
Who’s Prevent?
The trader consists of different companies that produce auto parts, among other things. The group employs about 30 locations worldwide, about 1,000 employees and recently achieved an annual turnover of 500 million euros. The daughter ES Automobilguss produced in Saxony Schönheide castings for transmission. Next Tuesday there will be in Schönheide with more 400 employees a staff meeting, according to the local IG Metall. is heard
As in Wolfsburg, is available with each of these companies trouble-free supply relationships for decades. Therefore, there was in the VW City probably not the concern of ever being able to be sent in the working hours of this “key suppliers”. When association of the automotive industry, which represents both the manufacturers and the suppliers, Prevent is an unknown quantity, and not one of the member companies. All the more surprising that Volkswagen has so committed to the company. Regardless of the outcome of the dispute with VW Prevent is probably done as a supplier of the automotive industry.
The two daughters of Prevent- group reported on Friday any blame for the escalation of the conflict on its own. For the crisis at VW and thus created short-time working one is not responsible, informed Alexander Gerstung, COO of ES Automobilguss GmbH, with. “VW is forcing us to take this action in order to protect our own employees in Lower Saxony and Saxony, and ultimately ensure the survival of the company.” The current situation is the result of a timely and groundless termination of contracts on after presentation of VW the series production relate. The resulting claims on the part of the two companies amounted to an average two-digit euro millions.
Volkswagen had tried in vain with injunctions to force the Prevent Group on the resumption of supplies. On Friday the group presented the Landgericht Braunschweig the request, Car Trim by a fine of up to 250,000 euros to force delivery. If this does not, administrative detention should be threatened against the manager of the company. Car Trim has now a few days time for comment. ES Automobilguss had appealed against the injunction opposition. In is advised on August 31 in the oral procedure.
How dangerous is the shortage of supply for the VW Group?
He shall in any case large part of the Group lame in Germany. First of the three final assembly plants Wolfsburg, Emden and Zwickau are concerned, where the Golf, Passat, Tiguan and Touran are produced. In Wolfsburg build around 20,000 employees every day 3800 cars, including over 2,000 golf. The Golf production is set here until further notice, so that the still sparse supply parts can be used for the Tiguan. The small SUV has just come onto the market and very successful. Here VW want to upset not miss the customers with long delivery times.
In Zwickau VW employs over 10,000 people and in Emden 9500. A large part of them is now in short-time working. This is probably also the second largest plant in Wolfsburg: In Kassel approximately 16,000 employees produce, among other gear for seven Group brands, especially for Skoda and Seat. However, other components of plants are affected. Brake discs and circuits from Braunschweig (8700 employees) are also less used as engines from Salzgitter (7000 employees) and Chemnitz (1750 employees), when fewer cars are assembled screwed into the final assembly plants.
The concern, the supply shortage could still expand, especially the people in Lower Saxony drives around. Wolfsburg’s Mayor Klaus Mohr appealed on Friday to the responsibility of the person responsible for the delivery stop parts manufacturers. “Man, this action by the supplier only condemn in the strongest terms, and I hope that they will come relatively quickly to their senses”, the SPD politician NDR said.
Volkswagen As dependent on suppliers?
Volkswagen is twelve brands and 120 manufacturing sites in many parts of the world one of the largest automakers. And as one of the largest auto parts manufacturer. The 1990s decisive trend towards the outsourcing of supply is stopped for a long time, many parts makes Volkswagen itself basis for this is the system of “modular transverse matrix”. You acknowledge that identical parts are installed in various models of different consolidated markets. This brings economies of scale, but also carries a greater risk: If a part is defective or is not supplied, various vehicles and brands are equally affected.
In the case of Prevent, Volkswagen has but apparently too dependent on a single supplier issued. An error such as Ferdinand Dudenhoeffer, director of the Center for Automotive Research (CAR) says. “An almost iron law in procurement says that the procurement at a single source (” single sourcing “) should never be the case between a global company and a medium-sized suppliers,” Dudenhoeffer said. The risks are just too great and would be disproportionate to any cost savings in purchasing. VW Shopping Chef Garcia Sanz, who is considered particularly hard costs pusher in the industry, have apparently disregarded this “fundamental law in purchasing”.
Must customers now wait longer for their new car?
VW dealers reported on Friday of first anxious inquiries from customers, whether their car is delivered on time. In a letter to the dealers of the Volkswagen distribution insured, the company expects an easing of the situation. For individual vehicles but there could be delays. If necessary to VW will strive together with the dealers about the customers stay mobile. Vehicles whose delivery date was already promised to come on time.
How does short-time work?
The Federal Labour Agency pays the partial unemployment benefits by as a partial replacement for the a temporary stoppage of work loss of contract. The short-time then receives 60 percent of the failed net pay; survived at least one child in the household, the short-time allowance is at least 67 percent. Various conditions must be met: The accident at work which must be unavoidable and temporarily, at least a third of employees in operating workers are affected by work and lost wages of at least ten percent. In the “temporary layoffs” is the loss of work 100 percent, the work is therefore completely suspended temporarily. Short-time working allowance is paid for a maximum of twelve months.
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