At our auto repair shop in Cincinnati, OH, we live and breathe automotive news. The headlines of major European companies like BMW, Mercedes, Porsche, and Audi are like soap operas to us. That’s why our mechanics were curious to learn that VW is currently suing its former parts supplier Prevent for 100 million Euros, or $112 million.
“The row dates back to 2016, when suppliers ES Guss and Car Trim stopped supplies shortly after being acquired by Prevent in a bid to raise prices, causing production losses at six of Volkswagen’s factories in Germany.
“Volkswagen has filed a first claim for its Skoda unit with the Brunswick regional court, it said, adding that the Dresden higher regional court would determine which courts are responsible for further damage claims.”
Left in the Lurch
Back in 2018, VW canceled all its contracts with Prevent after its factories ground to a halt when the parts manufacturer stopped shipping components.
“Business relationships are regularly examined with the aim of minimizing the negative effects of potential production disruptions in the interests of our customers, employees, dealers and other suppliers,” VW said in a statement at the time.
I guess that what happens when you don’t do your job — VW sues the pants off you. So we’ll just get right back to work repairing Volkswagens at our automobile repair shop here in Cincinnati.
