• 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
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
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • 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
About Us
  • 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

Most Popular

placeholder alt text
Europe
Denmark offered to trade Greenland to the U.S. in 1910—and America thought it was crazy
By Steven Lamy and The ConversationJanuary 22, 2026
2 days ago
placeholder alt text
Personal Finance
Sweden abolished its wealth tax 20 years ago. Then it became a 'paradise for the super-rich'
By Miranda Sheild Johansson and The ConversationJanuary 22, 2026
2 days ago
placeholder alt text
North America
Gates Foundation plans to give away $9 billion in 2026 to prepare for the 2045 closure while slashing hundreds of jobs
By Sydney LakeJanuary 23, 2026
1 day ago
placeholder alt text
Economy
'Some form of crisis is almost inevitable': The $38 trillion national debt will soon be growing faster than the U.S. economy itself, watchdog warns
By Nick LichtenbergJanuary 22, 2026
2 days ago
placeholder alt text
Success
McDonald’s CEO shares tough love career advice he’d give Gen Z and young millennial workers: ‘No one cares about your career’
By Orianna Rosa RoyleJanuary 22, 2026
2 days ago
placeholder alt text
Energy
Elon Musk warns the U.S. could soon be producing more chips than we can turn on. And China doesn’t have the same issue
By Sasha RogelbergJanuary 22, 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.


Latest in Tech

Jake Miller, CEO of Fellow.
SuccessEntrepreneurs
This millennial founder got rejected 73 times before building a 9-figure coffee company. One more no, ‘I would have figured out how to sell a kidney’
By Preston ForeJanuary 24, 2026
7 hours ago
Meta CEO Mark Zuckerberg in Menlo Park, California on Sept. 17, 2025. (Photo: David Paul Morris/Bloomberg/Getty Images)
AIData centers
Why Meta is positioning itself as an AI infrastructure giant—and doubling down on a costly new path
By Sharon GoldmanJanuary 24, 2026
8 hours ago
IMF managing director Kristalina Georgieva speaks to reporters outside during the 2026 World Economic Forum in Davos, Switzerland.
LawEconomics
AI productivity gains are making the rich richer, and they’ll wipe out jobs—but the IMF chief sees a silver lining for low-wage workers
By Tristan BoveJanuary 24, 2026
9 hours ago
Dario Amodei looking up
AIAnthropic
Anthropic’s head of Claude Code on how the tool won over non-coders—and kickstarted a new era for software engineers
By Beatrice NolanJanuary 24, 2026
10 hours ago
C-SuiteSocial Media
Meet TikTok’s new U.S. CEO: Adam Presser, a Harvard business and law grad with an affinity for Chinese movies
By Marco Quiroz-GutierrezJanuary 24, 2026
12 hours ago
RetailWeather and forecasting
How Walmart is using AI to reroute essential supplies ahead of Winter Storm Fern
By Alex Vuocolo and Retail BrewJanuary 23, 2026
24 hours ago