VW Halts German Production Over Unprecedented Fight With Supplier
- Parts-maker accuses VW of ‘exploiting’ dominant position
- Volkswagen labor boss says he’s ‘furious’ with the supplier
Volkswagen AG factories in Germany are grinding to a halt after a supplier took the unprecedented step of cutting off the automaker as the two battle in court and engage in a public war of words about who’s to blame for the impasse.
VW stopped Passat production on Thursday and will halt assembly of its best-selling Golf on Monday if the conflict isn’t resolved, said people familiar with the matter, who asked not to be identified. VW has officially said the factories producing those models face slowdowns, as do plants that build chassis, the basic underpinnings of vehicles. The supplier has essentially called the automaker a bully, prompting VW’s top labor boss to respond that he’s “furious” and the leader of its home state to say “coercive measures” by a court may be needed to end the conflict.