Loser of last quarter: Volkswagen

A dispute between Volkswagen and two of its suppliers has resulted in a production backlog of 22,000 vehicles, according to the German newspaper Welt am Sonntag on 28 August 2016. The backlog primarily affects Golf and Passat models. The Wolfsburg plant alone, which is Volkswagen’s headquarters, is running behind schedule to the tune of 10,000 vehicles.

Volkswagen ran into problems following a payment dispute with its suppliers Car Trim and ES Automobilguss, who then refused to deliver gearboxes and seat coverings. Following the diesel scandal, there have been claims that Volkswagen has cancelled contracts prematurely and without compensation.

Although a court ordered the suppliers to resume deliveries, they both initially ignored the ruling as they awaited the results of their appeal. The dispute has since been resolved and production activities have returned to normal. Details of the agreement have not been made public. This dispute is estimated to have cost Volkswagen around EUR100 million, with the week-long shut-down due to lack of parts affecting a total of 28,000 employees. It is expected to take several more weeks for the production backlog to be cleared.