Volkswagen’s output in Brazil has been affected due to the lack of auto parts, the automaker said. The company has a contract with the Prevent group, which provides a number of parts to Volkswagen’s three facilities in Brazil.
Prevent is said to have failed since March to provide the components the German automaker needs to produce its cars. Keiper, one of the companies of the Prevent group, was ordered in May by a Brazilian court to resume supplies of seats to Volkswagen to avoid a daily fine of BRL 500,000.
Volkswagen said that out of 11 deals it reached with the supplier to resume auto parts supplies, none was respected by the Prevent group in Brazil.
Volkswagen said it couldn’t produce 130,000 cars at its three plants in the cities of Sao Bernardo do Campo, and Taubate, both in the state of Sao Paulo; as well at its Sao Jose dos Pinhais facility in the state of Parana. The company reportedly ended the contract it had with Prevent and has also appealed to a court to be able to legally recover the equipment it has at the supplier’s facilities.
The automaker said it anticipated to August the employees’ collective vacations due to the lack of components.