. Then a feud with a small supplier brought the auto giant to its knees.
This past June, Business Insider Deutschland investigated the tactics of Project 1, a group set up to try to extricate Volkswagen from its relationship with Prevent. Hastor built up a reputation with Volkswagen management as a reliable supplier. Volkswagen made Hastor's name, and for nearly 40 years Wolfsburg's relationship with the Hastor family went smoothly.But, eventually, growing price pressure from Volkswagen started to put a strain on the relationship.Volkswagen's documents suggest it had already planned an exit strategy
The tapes also suggested that the fear in Wolfsburg was that Prevent might once again threaten Volkswagen's production. VW didn't want to allow Prevent to get that far. Though the tapes suggested Volkswagen coordinated its strategy with Daimler and BMW, Volkswagen said it made no concerted efforts with other car manufacturers.
Recordings captured a suggestion that a contact's proximity with the Kremlin could be used to complicate matters for Prevent The mood seemed to lift. A different manager suggested Schröder take advantage of his strong relationship with Russian leader Vladimir Putin, to get Russia to switch off the money tap for Prevent. Though it wasn't exactly clear from the tape, a source at Prevent spoke directly with Business Insider Deutschland and alluded to a Russian bank the company used for funding.
But the recordings suggest Schröder was actively involved and that the Volkswagen task force expected him to use his Russian connections to Volkswagen's advantage. It was clearly stated on the tapes that Schröder was actively involved in the conflict and that the task force wanted him to use his ties with the Kremlin.
Several others said the project was complicated. "Prevent produces at dumping prices, would be the cheapest supplier, and would thus move up the lists," another manager on the recording said. Since then, both parties have constantly tried to outdo each other through numerous lawsuits. In Germany alone, both companies are currently arguing in 10 cases, according toThis past June, Volkswagen filed yet another claim for damages of 17 million euros, or about $20 million, over "price dictation."in the US over allegations that VW improperly put pressure on suppliers to reject the Hastor family's acquisition attempts.
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