AD #1928 – VW Suspends Production Over Supplier Feud, The History Behind the 1st Camaro, Hyundai Teams with Amazon

August 22nd, 2016 at 11:52am

Runtime: 7:47

To watch this episode on YouTube click here.

- VW Picks the Wrong Fight
- Yeah, It’s Got a HEMI
- Skoda Puts the Gloves On
- Hyundai Teams Up with Amazon For Test Drives
- The History Behind the 1st Camaro

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16 Comments to “AD #1928 – VW Suspends Production Over Supplier Feud, The History Behind the 1st Camaro, Hyundai Teams with Amazon”

  1. G.A.Branigan Says:

    It’s about time that vw got b!tch slapped,especially by a supplier.They seem to be on a self destruct thing.Amazing.

  2. Marshall Says:

    Seems to me the standoff between VW and the Prevent Group could be great news for VW. If Prevent Group is contractually obligated to deliver supplies and they are refusing, that opens the door for VW to take them to court. With the damages VW is incurring a court verdict in their favor could have them taking over ownership of the other company.

  3. Cozy Coles Says:

    Hello Sean, Saw this video clip of the Camaro on AAH and said to myself, I was just at that place for the 50th Birthday party of the Buick Club of America. Looks like the Allentown Clasic Motor Car inc buildings owned by Nicola Bulgari. He actually has his Buick collection in Allentown, Pa. He started with a few repair and restoration garages and now must have maybe 7 garages, and he bought an old drive in Movie theater lot on union blvd by his garages and had it open to the public one day during the Buick event. Wow What a way to display you car collection.

  4. Buzzed Says:

    It really seems like the culture at VW needs s major overhaul, the days of ” do what I tell you and shut the fack up” are over, except at VW and a few other places, so maybe some of the suppliers are have had enough.

  5. Chuck Grenci Says:

    #2 Marshall

    You’d have a point if VW wasn’t in a breach of contract; failure on their part to pay for work done would most certainly give Prevent Group probable cause to cease (product shipments).

  6. Steve W Says:

    VW is treating their customers the same as their suppliers. I’ve had issues with VW when I was an owner. Things that should have been covered such as a battery were denied even though the car was covered bumper to bumper.VW has a “Me only” attitude and it is finally catching up to them!

  7. motorman Says:

    with VW sales tanking this could be a good way to cut production without upsetting the unions

  8. G.A.Branigan Says:

    This is from today’s transcript:

    VW PICKS THE WRONG FIGHT
    “You really have to question the strategy and motives of Volkswagen’s top executives. The company is reeling from its diesel emissions scandal, which has the potential to financially cripple the company. And now it goes and picks a fight with a critical supplier. As a result, VW is closing 6 factories in Europe and laying off more than 27,000 workers because it can’t get parts to make cars. Bloomberg reports that a German supplier called the Prevent Group stopped shipping parts to Volkswagen because it’s angry that VW cancelled future contracts and refused to pay compensation for the work it already did to prepare for those contracts. It accuses VW of squeezing suppliers to help pay for its emissions scandal.”

  9. Wim van Acker Says:

    @2: “Laying off 27,000 employees”: VW will suffer major damages because of this. The Prevent Group is a relatively small, privately held Wolfsburg-based company. If VW would have a case against them (about which I have no opinion since I do not know the facts) and VW would win: receiving a payment Prevent Group could afford or owning that company would be insignificant compared to the mega damage incurred.

  10. G.A.Branigan Says:

    I think vw has bitten off it’s nose to spite it’s face.

  11. Lisk Says:

    Typically when manufacturers make deals with suppliers, they own the tooling and all the commercial right to the parts made from the tooling. This is why GM was able to retrieve the tooling from their interior supplier a few weeks back. As much as I despise VW right now, I don’t know how the supplier can quit supplying parts if the contract is still valid. Holding VW hostage because of a future contract is not forthcoming should not affect the current agreements.

  12. G.A.Branigan Says:

    I think this is where it all lays down:

    “VW cancelled future contracts and REFUSED to pay compensation for the work it already did to prepare for those contracts.”

  13. Kit Gerhart Says:

    It’s unbelievable that VW, a company that has been so successful, in so many ways, can try so hard to completely self destruct. The VW brand hasn’t done well in the US, but Audi has, and VW has done well about everywhere else in the world.

  14. Kit Gerhart Says:

    I still like some of VW’s products, like Golf and Sportwagon, but there is no way I would buy one now.

  15. Roger T Says:

    Jeeesh what tha heck is going on at VW.

  16. BobD Says:

    Just-in-time delivery is a two-edged sword and this time VW got sliced to the bone. And you can bet the VW Purchasing folks are thinking “we told you so” to their upper management who decided to play hardball and got the ball shoved down their throat. I’ve seen this more than once in my career when the top management think they know more than Purchasing and end up eating crow.