Volkswagen announces supply contracts with Prevent subsidiaries: The demise of supplier-rebel Prevent

05/04/2018

Volkswagen announces supply contracts with Prevent subsidiaries The decline of supplier-rebel Prevent

DPA

A company headquarters of the automotive supplier Prevent near Wolfsburg

On August 2016, the chief buyers of the Volkswagen Group remember exactly – if not particularly like. Because then a small supplier made the Wolfsburg car giant look pretty bad. In the dispute over a major order that had been canceled, two German subsidiaries of the Bosnian Prevent Group temporarily stopped deliveries to the Volkswagen Group in August. For days therefore stood in the VW plants in Wolfsburg and Emden Ribbons still.

Ultimately, VW and Prevent agreed in weeks of negotiations new supply contracts, Ostensibly, the Prevent Group and its daughters won the fight against the Goliath Volkswagen. But now happens what industry experts already shortly after the agreement between Prevent and Volkswagen predicted: Volkswagen now drops the Prevent group completely. Thus, the alleged winners now losers – and in a quick process.

The fierce supplier Zoff is said to have cost VW a significant three-digit million amount in 2016 – because the Wolfsburg had previously overlooked an important detail. The Prevent group had tactfully incorporated the small metal casting specialist Car Trim and thus bought a powerful negotiating position. When VW wanted to sort out another Prevent subsidiary after a long cooperation, Prevent used this power to the full extent, to the surprise of Volkswagen.

After a good two years, Volkswagen is now back in full force. The Wolfsburg have the supply contracts with the Prevent subsidiaries ES Automotive Casting, Car Trim and Prevent Foamtech terminated without notice, The first two were the companies that discontinued deliveries to Volkswagen two years ago, triggering the tape shutdown.

700 employees directly affected by delivery contract termination

The accusation of a late revenge shows Volkswagen of itself, however, the group also explained that he is dependent on a “always plannable and trusting cooperation” with its suppliers. The sees the Volkswagen Group at Prevent apparently no longer exist.

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Prevent, in turn, announced that it was too close to the affected daughters Short-time work and dismissals for the approximately 700 employees will come. Prevent wants to initiate “legal protection measures” against the extraordinary dismissal.

With legal skirmishes the Prevent group, which has the Bosnian entrepreneurial family Hastor heard, plenty of experience. That’s how Prevent fears for years also with Daimler in court for the delivery of seat covers and demands 40 million euros in damages. A judge was recently declared biased at the request of Prevent, further delaying the proceedings.

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