VW's supplier feud shows limits of cost-cutting push

Frankfurt

VOLKSWAGEN AG's agreement with a recalcitrant supplier shows the limits of the carmaker's push to reduce spending in the wake of record fines over the emissions-cheating scandal.

In order to end the standoff that crippled the production of Passat and Golf cars, VW agreed to compensate Bosnian parts maker Prevent Group for a cancelled contract and extend the partnership for another six years, people familiar with the matter said.