Conflict reopened: VW announces all contracts – supplier Prevent feels betrayed

Production at VW

The carmaker causes great annoyance at its supplier Prevent.

(Photo: AP)

The actually settled conflict between the Volkswagen Group and the German-Bosnian supplier group Prevent breaks again after one and a half years. The Wolfsburg car manufacturer wants to cut all supply relationships with the rebellious supplier and therefore terminates all contracts.

Prevent, on the other hand, defends itself and threatens legal action. Several 100 jobs are at risk at various Prevent subsidiaries, 90 employees from a plant in Saxony-Anhalt has already been terminated.

The argument between Volkswagen and Prevent made headlines all over Germany in the late summer of 2016. The conflict was a fight between David and Goliath, the small supplier had challenged the big billion-dollar company.

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