Automotive supplier Prevent
According to its own information, Prevent accuses VW of having prevented larger suppliers in the USA from taking over smaller companies by unfair means
Bangalore The carmaker VW has been sued by its subcontractor Prevent Group for more than $ 750 million in damages. Prevent raises VW according to own information before, larger suppliers in the USA to have prevented the takeover of smaller companies by unfair means. These would have the Wolfsburg company have to make sure not to buy from Prevent.
VW wanted to cut costs with this practice. The small suppliers had to bow to the automaker, otherwise they threatened bankruptcy. The lawsuit was filed with a district court in Detroit. From VW was initially no opinion to get.
It is not the first legal dispute between Volkswagen and Prevent. In 2016, the two Prevent subsidiaries Car Trim and ES Automobilguss ceased all deliveries to Volkswagen for a few days. The result: In the VW plants in Wolfsburg and Emden, the bands were silent for days.
Volkswagen has to find replacement suppliers at that time. In their distress, the Wolfsburg agreed with Prevent on a temporary peace agreement.
But the breach of trust had more consequences. In the spring of 2018 VW announced the Prevent subsidiary TWB all contracts. The small supplier tried to stop the dismissal with interim injunctions. In the end, they met in court.
The Prevent Group belongs to the entrepreneurial family Hastor. Volkswagen and Hastor have been in the clinch for years. In the US now threatens the next round of confrontation.