• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechFuture of Work

Here’s Why Volkswagen’s Supplier Problems Just Became a Lot Worse

By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
August 22, 2016, 12:19 PM ET
Volkswagen To Announce Annual Results
A brand new Volkswagen Golf 7 car is stored in a tower at the Volkswagen Autostadt complex near the Volkswagen factory on March 10, 2015 in Wolfsburg, Germany.Photograph by Alexander Koerner — Getty Images

Volkswagen has been forced to reduce work hours and production at six of its German factories after the automaker was unable to negotiate a settlement over a contract dispute with two of its suppliers. Production of VW’s Passat and Golf models will be affected by the temporary plant closures and reduced hours.

The German automaker said in an announcement on Monday that it is continuing to work on reaching an agreement with suppliers CarTrim and ES Automobilguss, which are owned by parent company Prevent DEV GmbH.

CarTrim, which makes seats, and ES Automobilguss, which constructs housings for gearboxes, stopped deliveries to the giant German carmaker last week. The two companies have accused Volkswagen (VLKAY) of canceling contracts without explanation or offering compensation. CarTrim and ES Automobilguss are seeking compensation to offset what they say will be tens of millions of euros in lost revenue.

Germany’s Braunschweig District Court has issued injunctions requiring the suppliers to resume deliveries. VW says the suppliers have not as yet met their obligations. The interruption in deliveries has caused supply problems for VW.

Get Data Sheet, Fortune’s technology newsletter

The factories will closed for short periods of time, beginning with its Emden plant (which produces the Passat sedan), its Braunschweig factory (makes chassis components and plastic parts), and Wolfsburg (handles some segments of the Golf production). Emden will be closed through Thursday. Wolfsburg will be closed through August 27, and Braunschweig through August 29.

For more about Volkswagen’s settlement over the emissions cheating scandal, watch:

Other plants that will be affected include VW’s Zwickau factory (which produces the Golf and Passat), its Kassel plant (makes transmission and exhaust systems), and Salzgitter (produces segments of engines).

In all, approximately 28,000 people work at these six factories.

About the Author
By Kirsten Korosec
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

crew aboard artemis II
Innovationspace
‘It’s 13 minutes of things that have to go right’: Artemis II splashes down despite faulty heat shield
By Catherina GioinoApril 10, 2026
4 hours ago
The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
PoliticsFood and drink
The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
By Catherina GioinoApril 10, 2026
6 hours ago
Three people sit behind a desk and look at the phone screen of the person in the middle.
Future of WorkConsulting
Meet ‘trendslop,’ the new, AI-fueled scourge of workplace consultants everywhere
By Sasha RogelbergApril 10, 2026
6 hours ago
Amazon is still paying Jeff Bezos an $80,000 yearly salary—but $1.6 million for travel and security
Big TechCEO salaries and executive compensation
Amazon is still paying Jeff Bezos an $80,000 yearly salary—but $1.6 million for travel and security
By Marco Quiroz-GutierrezApril 10, 2026
8 hours ago
Kash Patel sits with his two fingers on lips
CybersecurityIran
First they went after medtech, then Kash Patel. Iranian hackers’ next target is likely ‘low-hanging fruit’ in water, energy, and tourism, experts say
By Jacqueline MunisApril 10, 2026
9 hours ago
scott bessent
CybersecurityFederal Reserve
The AI that found 27-year-old vulnerabilities no human ever caught before just forced an emergency meeting with every major Wall Street CEO
By Jake AngeloApril 10, 2026
11 hours ago

Most Popular

A Meta employee created a dashboard so coworkers can compete to be the company's No. 1 AI token user—and Zuckerberg doesn't even rank in the top 250
AI
A Meta employee created a dashboard so coworkers can compete to be the company's No. 1 AI token user—and Zuckerberg doesn't even rank in the top 250
By Fortune EditorsApril 9, 2026
2 days ago
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
Economy
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
By Fortune EditorsApril 9, 2026
2 days ago
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
Investing
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
By Fortune EditorsApril 9, 2026
2 days ago
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
Innovation
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
By Fortune EditorsApril 10, 2026
20 hours ago
Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
Success
Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
By Fortune EditorsApril 10, 2026
13 hours ago
'I hate working 5 days': Zoom CEO says traditional work schedules are becoming obsolete—and predicts a 3-day workweek by 2031
Success
'I hate working 5 days': Zoom CEO says traditional work schedules are becoming obsolete—and predicts a 3-day workweek by 2031
By Fortune EditorsApril 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.