September 2, 2016 / 5:22 PM / 2 years ago

Daimler reviews supplier ties in wake of crippling VW spat

Daimler board members sit on the podium during the company's annual news conference in Stuttgart, Germany, February 4, 2016. REUTERS/Michaela Rehle/File photo

BERLIN (Reuters) - Daimler (DAIGn.DE) is reviewing relationships with its suppliers to avoid the kind of crippling production halts that afflicted rival Volkswagen (VOWG_p.DE), its Chief Executive Dieter Zetsche said on Friday.

A dispute between VW and one of its suppliers led to production slowdowns at six Volkswagen plants last month, highlighting how vulnerable modern car production systems are to stoppages.

“You of course take an example like this to take precautions to minimize risks like this and ideally to rule them out,” Daimler’s Zetsche said at a roundtable event in Berlin.

“That is why we reviewed existing measures, and intensified them in some cases, to avoid such a situation from arising,” Zetsche said, without elaborating further.

Reporting by Irene Preisinger, writing by Edward Taylor; Editing by Susan Fenton

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