VW sees car output back to normal by Monday after supplier deal
- Wall St. reverses course as discretionary, industrials weigh
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Qualcomm (QCOM) to Acquire NXP Semi (NXPI) in $47B Deal
- Tesla (TSLA) Posts Q3 adj.-EPS of 71c
- Pre-Open Stock Movers 10/27: (PRQR) (OCN) (TWTR) Higher; (CYH) (GNC) (RNWK) Lower (more...)
The logo of a Volkswagen Beetle car is seen at the so called "Sunshinetour 2016" in Travemuende at the Baltic Sea, August 20, 2016. REUTERS/Fabian Bimmer
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
HAMBURG/BERLIN (Reuters) - Volkswagen
The dispute with suppliers Car Trim and ES Automobilguss, which had stopped deliveries of seat covers and cast iron parts for gearboxes, had threatened to undermine Volkswagen's (VW) recovery from its diesel emissions scandal.
VW and the two suppliers on Tuesday resolved the dispute affecting 28,000 workers at six of VW's 10 German factories, a day after Europe's largest automaker halted production of the top-selling Golf and Passat models as well as assembly of engines, gearboxes and emissions systems.
Component plants in Kassel, Salzgitter and Braunschweig will accelerate production over the coming days to reach normal output levels by the start of next week, VW said.
The suppliers were seeking 58 million euros ($65 million) of compensation for advance payments they made on a development contract that VW cancelled without notice, two sources familiar with the matter told Reuters. VW had refused to pay the sum.
The new deal will see the suppliers, both part of Prevent group, work with VW for at least another six years, and VW will also be able to source up to 20 percent of cast iron parts from another supplier over that time, the sources said.
($1 = 0.8888 euros)
(Reporting by Jan Schwartz and Andreas Cremer; Editing by Mark Potter)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pakistan opposition says dozens of activists arrested ahead of planned protest
- Russia's Putin says cyber attacks are unacceptable
- FCC approves new broadband service privacy rules
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!