Volkswagen accused of unfair competitionDecember 1, 2020
It is believed that the Volkswagen Group allegedly carried out a campaign to “destroy” the Bosnian supplier Prevent Group, conspiring to withdraw it from the market and denigrate it in the press.
According to the lawsuit, senior VW officials, including Ralph Brandstätter, head of the VW brand, have begun a conspiracy, codenamed “Project 1,” to take the Prevent Group out of business.
The goal was to send “a warning to other suppliers about what would happen if they opposed VW’s anti-competitive terms and prices,” the Bosnian company said in a complaint filed Monday in Detroit federal court.
According to Prevent, a former VW manager who worked on the project leaked taped conversations to the press about how to transfer the company’s car seat contracts to another supplier. VW has asked prosecutors to investigate the tape leak.
VW executives said the case was “unfounded.”
VW was forced to temporarily suspend production at six of its factories in 2016, affecting nearly 28,000 workers after two German subsidiaries of Prevent suspended parts supplies in a dispute with VW. The companies reportedly paid off in the same year.
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