Auto parts supplier: Around 46 million euros from NHG are frozen due to VW reclamation

Volkswagen Golf

The freezing of funds to ensure that VW may still be able to enforce recoveries against the Neue Halberg casting, said a court spokeswoman.

(Photo: Reuters)

BrunswickVolkswagen has won a stage victory in the dispute with the supplier Neue Halberg Guss (NHG): Around 46 million euros assets of the automotive supplier from Saarbrücken are frozen. NHG may not spend the money for now, decided the district court Braunschweig on Wednesday. (Az .: 22 O 5376/18)

The court upheld an application by VW from the beginning of December 2018. The freezing of funds to ensure that VW may still be able to enforce recoveries against the New Halberg casting, said a court spokeswoman.

After the NHG belonging to the Prevent Group had significantly increased the prices for its car parts, the Wolfsburg car manufacturer had paid between April and June 2018 around 42 million euros to NHG. To maintain the operation, VW accepted the surcharge subject to change.

The district court ruled that VW was in a predicament: The insufficient supply NHG at the beginning of May 2018, for example, led to failures at the Salzgitter plant. In addition, the judges ruled that the price increases could be considered usurious because they were well above the 100 per cent allowable limit. The district court left open whether the amount of the recovery was justified.

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This should not be clarified in the urgent procedure, it should be obtained in the main proceedings an expert opinion. Even if VW was entitled to repayment, was not clear, said a spokeswoman. An appeal can be appealed against the verdict.

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