A German court ruled on Friday that Volkswagen Group's member 'Audi' breached the fundamental business principles by terminating in an illegal way the contract with Bosnia's Prevent TWB company on delivery of materials. The court asked VW Group members to wither compensate the damage or resume the material purchase deal.

The Higher State Court in Düsseldorf rejected the first-instance decision in this case and ruled in favour of Bosnian company.

“We welcomed the decision of the Higher Court in Dusseldorf, which provides us with legal security in other processes. The court confirmed that termination of the contract by VW Group's Audi was illegal and, accordingly, said that Audi must compensate the damage to Prevent. The amount will be specified in a separate process,” said the Prevent's press release.

“This decision is very significant for all suppliers in the car industry, because it sets a question if the VW Group's General Terms of Business with other suppliers are in line with the law and if they offer long-term business sustainability,” they added.