Volkswagen has confirmed that production of its Golf and Passat models will resume after settling disputes with two of its suppliers.
Earlier in the week, production of the Golf and Passat were halted as were the assembly of engines, gearboxes and emissions systems at six of the company’s 10 German factories.
Now the two suppliers at the center of the row, CarTrim and ES Automobilguss, have agreed to start delivering parts again, according to Bloomberg.
After holding talks for more than 20 hours, the companies finalized an agreement which will see them continue to work together for at least a further six years. As part of the deal, VW will also be able to source similar parts from other suppliers in a bid to ensure that similar disputes won’t happen in the future.
It is reported that the disagreement started when CarTrim, a supplier of seat covers, and ES Automobilguss, a supplier of cast iron gearbox components, had a contract with VW unexpectedly cancelled.
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