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VW blames suppliers for crippling row

dpadpa 22/08/2016

Volkswagen faces production delays at six plants following a dispute between Europe's largest carmaker and two of its suppliers.

A halt in production of Volkswagen's flagship brands was the fault of parts suppliers withholding orders, a top representative of the carmaker's workforce says.

"In our view, the responsibility clearly lies with the supplier," Bernd Osterloh, supervisory board member and head of VW's works council said in an interview with the Bild newspaper.

The dispute between VW and two of its production partners - gearbox specialist ES Automobilguss and seat covers manufacturer Car Trim - has already forced the carmaker to halt production of its Golf and Passat models.

The company said on Monday it has cut the working hours of 27,700 employees at workshops across Germany as a result of the dispute.

The suppliers accused VW of forcing the halt in deliveries, arguing that the carmaker cancelled contracts without reason or notice and refused to compensate its partners accordingly.

Representatives of the rowing parties are to meet on Monday in Wolfsburg, the northern German city where VW is headquartered, in a bid to resolve the dispute.

The row has added to the pressure on VW as it battles to emerge from the emissions-testing scandal that has engulfed the group after it admitted in September to installing software aimed at cheating environmental tests on 11 million diesel vehicles around the world.

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