German government urges Volkswagen to solve supplier dispute

The German government on Monday urged Volkswagen to solve a dispute with suppliers which the automaker said had interrupted its production at several plants.

"We assume and also expect the companies to resolve the outstanding issues as soon as possible," said Economy Ministry spokesman Andreas Audretsch at a press conference in Berlin.

"It involves thousands of jobs that could be affected by short-time working. There is a high responsibility to address these issues as constructively as possible," he added.

According to Volkswagen, a halt of deliveries by two suppliers making seats and gearbox parts has interrupted production at six of its plants, affecting some 27,700 workers.

"Although Braunschweig District Court has issued injunctions obliging the suppliers to resume deliveries, the suppliers have not as yet met their obligations," said the company in a statement on Monday, adding that it would cut work hours at plants producing Golf and Passat models as well as engine, chassis, transmission and exhaust systems.

Source : XINHUA