Volkswagen Suspended Production For the Golf Model! Read Here Why!

Volkswagen Suspended Production For the Golf Model! Read Here Why!

The Golf model is Volkswagen’s best-selling model in Europe so hearing this news really makes you wonder why they decided to suspend the production.
This decision comes as a result of disagreements with two suppliers but if the situation will not be remedied in time, the Germans could lose their world leadership in sales.

Germans from Volkswagen announced that they would stop the production of the Golf for at least 5 days, due to problems with suppliers.
After German manufacturer Bosch recently draw the authorities’ attention because of the important role played in the Dieselgate scandal, manufacturer Volkswagen suffers a further blow that could cost the brand the global leadership position in terms of sales.

Due to problems with suppliers, the Germans announced that production of the Golf at the main plant in Wolfsburg will be interrupted for 5 days.
Measures to reduce costs do not end here, given that 10,000 of the 60,000 employees will have reduced working hours along with three other Volkswagen plants in Germany.

It all started when the supplier of components for gearboxes, ES Automobilguss, interrupted deliveries after another supplier, Car Trim, took a similar decision.
Money was, as always, the main reason for the disagreement, and more specifically some misunderstandings about some payments but the problem is also due to the fact that the manufacturer from Wolfsburg demanded lower prices in their attempt to reduce costs after the Dieselgate scandal.
According to analysts, Volkswagen could lose 40 million euros per week if the situation does not improve. The car manufacturer said it will appeal to court for suppliers to respect their commitments.

The most important thing is that these losses may jeopardize the company’s global leadership position in sales, a position earned against the Toyota not so long ago. If we remember correctly, Toyota went to the second positioned after similar production problems.

Specifically, the Japanese manufacturer was forced to suspend production at several factories due to earthquakes in April and an explosion occurred at the steel mill owned by one of their affiliates.

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