Production at Skoda
The Czech VW subsidiary has to compensate the supplier Prevent.
(Photo: obs)
Celle / Wolfsburg The Volkswagen subsidiary Skoda has to pay damages to a subsidiary of its former supplier Prevent after the termination of a contract for car seat backrests. An exact amount is not mentioned in a corresponding ruling by the Higher Regional Court (OLG) Celle – the compensation should, however, relate to the value of missing deliveries from April 2019 to the end of 2025.
The amount in dispute itself is seven million euros, Prevent sees a signal effect for other processes as well. VW had unilaterally terminated contracts with the group of companies on March 31, 2019 after a delivery boycott and a violent row over conditions, proceedings are still pending in other courts and in other countries.
The decision, which was before the German Press Agency on Wednesday, results from the appeal against a previous decision of the Hanover Regional Court. The Cartel Senate of the Celler OLG decided that the original plaintiffs Volkswagen AG and Skoda would have to compensate the Prevent offshoot TWB “for all damage” that “has arisen or will arise” from the termination of the delivery contract and refusal to fulfill it. Skoda should also provide information about which replacement suppliers have been selected since April 2019.
Volkswagen said they believed the judgment was wrong. Among other things, the judges did not take sufficient account of the fact that, from the perspective of the group, there was a possible threat of a renewed delivery stop by Prevent. Further appeals would be considered. A Prevent spokesman replied that the supplier saw confirmation that the Skoda terminations “were unfounded and illegal”. It’s about the Octavia, Karoq and Superb models.
More: Prevent files new US lawsuit against Volkswagen