August 22, 2016 - 17:26 AMT
Volkswagen cuts 28,000 workers’ hours amid emissions scandal

Embattled auto giant Volkswagen said on Monday, August 22 it would halt production at six plants in Germany for several days as a legal dispute with two key suppliers deepened, AFP reports.

Around 27,700 workers would have their work hours slashed by the end of August, in a new headache for the group which is struggling to move past an emissions cheating scandal that is costing billions.

VW had been forced to take the drastic measures at the factories that produce some of its most popular models including Passat sedans and Golf compacts after the two suppliers of gearbox parts and seat covers halted deliveries.

"Although the state court in Brunswick issued temporary injunctions requiring the suppliers to resume deliveries, they so far haven't fulfilled this obligation," the VW statement read.

Instead, the components' manufacturers are appealing the court decision, AFP says.

VW said it would resume talks with the suppliers on Monday.

While the group "wishes to achieve a result through negotiations," it may also pursue legal means, a spokesman said.

The parts suppliers say that VW broke off several contracts with no advance warning or compensation, leaving them with no choice but to suspend deliveries to protect their own businesses and workforce.

Affected factories include Emden, Zwickau, Kassel, Salzgitter, Brunswick, and a key site at the firm's headquarters of Wolfsburg.