Volkswagen is trying to jump another hurdle as it temporarily halts production at six plants and idles about 28,000 employees in the process. VW blames the mess on two suppliers: CarTrim, and ES Automobilguss.
The automaker says contract talks broke down and left the company with no choice but to halt production of the Volkswagen Golf and Passat. Thousands of jobs will be affected in the production of engines, transmissions, chassis, exhaust systems and even plastic parts.
A district court issued injunctions demanding the suppliers start doing their jobs, but CarTrim and ES Automobilguss haven't obliged. VW claims the companies are ignoring the court after ignoring their obligations to VW, but both companies say none of the problems would exist if the automaker wouldn't have canceled contracts without explanation or compensation.
Both suppliers say the canceled contracts are worth tens of millions of euros and the contracts wouldn't have been canceled if VW wouldn't be in such a mess with its emissions scandal.
Although the automaker says it is trying to reach a mutual agreement with the suppliers, there is no way to know how long the disagreements will continue.
VW Wants Investor Lawsuit Tossed Out
Volkswagen wants a federal judge to dismiss securities lawsuits filed after investors said they lost money because of VW's emissions cheating that went on at least seven years.
U.S. District Judge Charles Breyer was asked to dismiss the securities suits after VW said the lawsuits, filed by lead plaintiffs the Arkansas State Highway Employees' Retirement System and the Miami police pension fund, are without merit. Attorneys for the automaker argue any alleged problems with investors shouldn't be placed before a judge or jury, at least not in the U.S.
The lawsuits accuse VW of knowing its vehicles were equipped with emissions "defeat devices" used to fool official emissions tests. Once the tests were concluded, the cars emitted up to 40 times the amount of nitrogen oxides as allowed by law.
Although 2-liter "clean diesel" owners will finally see relief in the form of vehicle buybacks, investors say they have watched as stock prices dropped because of VW's deception.
Lawyers for former CEO Martin Winterkorn and Herbert Diess, chairman of the board of management, claim the U.S. court system is not the place to argue about investor issues because those problems should be reserved for German courts.
VW says everything issued to investors came out of German headquarters and legal complaints filed in the U.S. "do not satisfy elements of a U.S. securities claim." In addition, attorneys for Winterkorn say the former CEO hasn't even visited the U.S. since July 2015, which was before the emissions chaos ensued.
Judge Breyer is scheduled to hold a hearing about the matter on December 16, 2016.