Volkswagen files lawsuit against former supplier Prevent

Source: Xinhua| 2020-01-07 23:02:01|Editor: Mu Xuequan
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BERLIN, Jan. 7 (Xinhua) -- Volkswagen has filed a lawsuit against its former supplier Prevent, the German car manufacturer confirmed to Xinhua on Tuesday.

In the ongoing legal dispute, Volkswagen is seeking 100 million euros (112 million U.S. dollars) in damages caused by delivery stops of two Prevent companies ES Guss and Car Trim, according to Volkswagen. The newspapers of the German Funke media group were the first to report on Tuesday.

Car Trim had supplied the Volkswagen group with seat parts and ES Guss with transmission housings.

After the takeover of the two companies, Prevent stopped the supply for several weeks in summer 2016 in order to "enforce a number of unjustified claims," Volkswagen noted.

According to Volkswagen, the delivery stops led to a halt of production at six plants in Germany and around 7,500 employees of Volkswagen were set to short-time work.

The delivery stops were "in breach of contract and illegal, this has since been confirmed by various first and second instance judgements", a Volkswagen spokesperson said.

The first lawsuit was filed on behalf of Volkswagen brand Skoda at the Brunswick regional court. According to Volkswagen, the higher regional court in the city of Dresden would decide where further damage claims by other Volkswagen brands would be dealt with.