Prevent has filed a lawsuit against Volkswagen. The components manufacturer has cited the brand at the Detroit Court. According to Reuters, Prevent is accusing VW of taking too much advantage from its position in order to impose certain conditions to its suppliers that adversely affect free market competition. The Wolfsburg-based multinational denies the allegations: “The lawsuit has no foundation”.
Prevent files a lawsuit
Prevent, headquartered in Germany and present with production sites in Eastern Europe, has allegedly asked VW to pay 750 million USD of damages (677.2 million euro). The stated reason is that “Volskwagen utilizes its market power to crush smaller suppliers – synthesizes Reuters -, that are thus forced to deal with unfair pricing practices or face bankrupt”. Prevent was a supplier of the group until 2018. The relationship broke after workers’ strikes, also due to poor timing, caused a delay in the delivery of different orders.
“This lawsuit has no ground – answers Volkswagen in a note -. We will actively fight this in court by using all legal tools at our disposal”.