A court in the German city of Dusseldorf ruled in favor of the Prevent vs. Volkswagen group. In the judgment of this court, damages to Prevent, which supplied parts for Volkswagen, will be paid by Audi belonging to the VW group.
VW has no right to appeal this second instance judgment in favor of Prevent.Prevent and VW have been in litigation for years over terms of multi-million dollar parts delivery.
Prevent sued Volkswagen because the German giant terminated all supply contracts for Prevent’s TWB subsidiary in Hagen. VW unilaterally terminated contracts under which TWB supplied more than two million seat structures for VW, Audi and Seat. The German media say this is a significant milestone in the German courts’ actions in this process, Vijesti.ba news portal reports.
The Prevent Group in BiH welcomed the Dusseldorf Court’s ruling confirming that the VW Group member had illegally terminated the delivery contracts, thereby undermining basic business postulates.
“We welcome the decision of the Dusseldorf Higher Regional Court, which offers us legal certainty for other proceedings. The court confirmed that the termination of the contract by a member of the VW Group Audi was unlawful and, accordingly, Audi is obliged to pay the damage to Prevent. The amount of damage will be defined in a separate process. This ruling is very important for all automotive suppliers, as it raises the question of whether the General Terms and Conditions of the VW Group’s business with other suppliers are in compliance with the law and whether they offer long-term business sustainability,” the Prevent Group stated.