FRANKFURT: Embattled auto giant Volkswagen said on Monday it would halt production at six plants in Germany for several days as a legal dispute with two key suppliers deepened.
Around 27,700 workers would have their work hours slashed by the end of August, in a new headache for the group which is struggling to move past an emissions cheating scandal that is costing billions.
VW had been forced to take the drastic measures at the factories that produce some of its most popular models including Passat sedans and Golf compacts after the two suppliers of gearbox parts and seat covers halted deliveries.
“Although the state court in Brunswick issued temporary injunctions requiring the suppliers to resume deliveries, they so far haven’t fulfilled this obligation,” the VW statement read.
Instead, the components’ manufacturers are appealing the court decision.
VW said it would resume talks with the suppliers on Monday.