VW’s dispute with riot suppliers escalates: Prevent plays again Rambo – and damaged career of a VW top manager

05/30/2018

VW’s dispute with riot suppliers escalates Prevent plays again Rambo – and damaged career of a VW top manager

DPA

Founder at Halberg Guss: The new owner Prevent uses the company for his long dispute with Volkswagen

A new management, which raises prices in the dispute over supply contracts by up to 1000 per cent. Employees who almost paralyze production at short notice with a multi-day company meeting. A state parliament, which turns itself into the fate of the foundry Neue Halberg Guss … It goes up in the otherwise rather contemplative Saarland. The reason for this is a long-smoldering dispute between the auto giant Volkswagen and the Bosnian supplier Prevent; started in South America and arrived in Saarbrücken-Brebach.

According to information from manager-magazin.de, the dispute has long since reached the upper management levels in Wolfsburg and should have contributed at least to the fact that a powerful purchasing manager may well be denied promotion to the Group Executive Board. The current Zoff has a long history – so in turn:

In the summer of 2016, the forced Bosnian car supplier Prevent, the German public until then virtually unknown, the mighty Volkswagen Group in its knees: In the dispute over canceled supply agreements stopped the German Prevent subsidiaries ES automotive casting and Car Trim Deliveries of transmission components to Volkswagen, Prevent had acquired the two German foundries only a few months before the dispute.

Because Volkswagen was not able to dodge fast enough for replacement suppliers, the car giant had stopped for several days. The involuntary production stop should have cost the Wolfsburg a clearly hundreds of millions. After tough negotiations agreed Volkswagen and Prevent on new supply contractsthat should run until mid-2018.

VW secretly seeks replacement, Prevent strategically buys

At the same time, the Volkswagen Group began secretly looking for a replacement for the now unreliable foundries. After almost two years, the Wolfsburg had the new contracts apparently in the bag: at the beginning of April 2018 they terminated the supply contracts with ES Automobilguss, Car Trim and another Prevent subsidiary without notice.

The termination prepared Volkswagen thoroughly before: According to information from manager-magazin.de the supplier Adient should have manufactured a doubled quantity for a year to catch the expected delivery stop. But the Wolfsburg went well even further to have something against the disgraced Prevent-daughters in the hand: Volkswagen should investigate the Prevent Group have been commissioned – according to VW “within the legally permissible”, after Prevent reading rather spying.

Prevent threatened Volkswagen because of the contract terminations by return mail Compensation claim in the billions at. However, the belligerent Bosnians had in recent years The kitchen manufacturer Alno caused turbulence, also prepared in another way for another skirmish with the Wolfsburgers. beginning of the year Prevent bought the German foundry group Neue Halberg Guss (NHG) with around 2,000 employees – from a financial investor who acquired Halberg in July 2017.

Page 1 of 3

To home page