The dispute with two companies that are no longer as agreed supply their parts to Volkswagen, the Wolfsburg-based group is costly. Because the two relatively small suppliers Car Trim and ES Automobilguss provide no seat covers and transmission parts more 8000 employees at the Emden plant are already working short time , for the headquarters in Wolfsburg and the production sites Zwickau and Kassel tested this step. Next week more than 20,000 VW employees could be in the forced leave. Many production lines stand still.
Analysts at Swiss bank UBS have now estimated in a study, which could cost Volkswagen armed with Car Trim and ES Automobilguss. They have looked especially the Golf production at the main factory in Wolfsburg. Only at this location approximately 17,000 vehicles were manufactured according to UBS week. Would that work for a week resting, the loss of gross income would be around 100 million euros.
delivery stop despite injunctions
So far it is a very rough estimate, because of the failure of the trader probably does not lead to a failure of the entire production in Wolfsburg. On the other hand effects from other works have not been considered. Because the employment agency would carry part of the burden by the requested short-time work, the UBS expects a somewhat smaller negative effect on the actual profit. appreciate the analysts that earnings per share could turn about ten cents lower because of delivery dispute.
Even auto expert Ferdinand Dudenhoeffer the Center for Automotive Research (CAR ) at the University of Duisburg-Essen is based on hundreds of millions of losses, which could cause the delivery stop. “It is still difficult to estimate the actual impact, because the halt in production could take longer and Volkswagen could demand compensation from suppliers, if their action is illegal,” write the UBS analysts in their study. If VW wants to not comment on how much is the damage caused by the loss of production. From corporate circles but reportedly that of course you check claims for damages.
In fact, Volkswagen wants to use all legal means to get as quickly as possible to the components. Already well a week ago, the Landgericht Braunschweig decided with two injunctions that both companies are committed to continue to deliver their parts to VW. However, the suppliers hold securities denominated Volkswagen so far to this decision. ES Automobilguss has appealed against the order, Car Trim can still appeal. Nevertheless, the injunctions are now enforceable.
possibility of administrative detention against CEO
For VW takes over the District court Zwickau instruct a bailiff, as the seat of both suppliers located in Saxony. Whether that has already happened is unclear. A spokesman for the court could not be reached on Friday. Such enforcement in the VW bailiff would let drive with your truck with the manufacturers to collect the parts, however, assumes that these parts are already produced and Volkswagen knows where they are stored.
Alternatively, VW has therefore asked the Landgericht Braunschweig applications, both companies to threaten an administrative fine or even administrative detention for the CEO, to force them to supply. Request is made in the case of the seat cover company Car Trim a fine of up to € 250,000 per violation of the obligation to deliver. Currently, the suppliers and their lawyers have the possibility to deliver opinions. The court could order punishment therefore threaten until early next week.
In the case of ES Automobilguss Volkswagen has also applied for the so-called authorization to substitute performance. This is not a seizure of parts, but the fact that VW may make the transmission parts from another third companies and delivery – at the expense of ES Auto cast. Also on this request, the court has not yet decided.
“VW forces us to this approach”
Mysterious remains why the suppliers escalate the dispute so. 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. About the one now disputes.
On Friday, Car Trim and ES Automobilguss reported for the first time to speak. “For the crisis at VW and thus created short time we are not responsible. That is homemade, and VW shifted their own problems on the supply industry,” said Alexander Gerstung, member of the Management ES Automobilguss. “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.”
Dealing with VW’s suppliers was unacceptable
the delivery stop was the result of “time and on groundless termination of contracts” by VW. This claim had arisen in the mid double-digit million amount. “Since VW refused compensation in the subsequent negotiations, to CarTrim and ES Automobilguss saw ultimately forced to stop delivery”, it says in the statement.
Man is not interested in further escalation of the conflict. “But the way how VW deals with suppliers is in no way acceptable and can each smaller operation to ruin driving” Gerstung said. “We are still targeting an amicable solution with VW and are open to proposals.”
The Communication stresses Car Trim and ES Automobilguss were separate companies. However, both are connected to the Prevent Group. The owner companies of both companies operate under the same address as the Wolfsburg Prevent Group. The manager of the owner of Car Trim is also also managing director of Prevent Holding.
criticism of the purchasing policy of VW
Industry experts predict that there will be significant problems with the suppliers must, otherwise you will not own existence would jeopardize, by causing a halt in production at VW. Finally, Volkswagen is expected to not only be awarded no more repeat business to the company, but they also sue for damages. Given the possible loss amount of 100 million euros per week is likely the rapidly exceed the solvency of suppliers.
is now but also criticism of the purchasing policy of VW loud, the Board Francisco Javier Garcia Sanz responsible. Expert Dudenhoeffer criticized especially that you have to rely on a single supplier for the parts. In the auto industry it is common to designate the same components from different companies, so as not to fall into a dependency on a single supplier. “Sanz has the Basic Law in Shopping disregarded,” says Dudenhoeffer.
In addition, it had clearly not acted in Prevent a particularly stable company, so that you the risk could have entered, parts can only be obtained from this company. “A global company has its entire production chain built on a member of a medium-sized company, the more aroused a less solid impression,” says Dudenhoeffer. “This is not only amateurish, but naive in the extreme.” The conclusion of the expert: “It looks as if VW after diesel gate its shopping gate.”