VW to Reshuffle $56 Billion Battery Push as Samsung Deal at Risk

VW to Reshuffle $56 Billion Battery Push as Samsung Deal at Risk
In this Jan 26, 2015 file photo worker Maik Neubert checks a Passat Variant car during the visual inspection during a press tour at the plant of the German manufacturer Volkswagen Sachsen in Zwickau, Germany. AP Photo/Jens Meyer
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Volkswagen AG is making changes to its battery-purchasing plan worth about 50 billion euros ($56 billion) over concerns that one of its supply deals, with Samsung SDI Co. Ltd., might unravel, according to people familiar with the matter.

Samsung initially agreed to deliver batteries for just over 20 gigawatt hours, enough to power 200,000 cars with 100 kilowatt hour packs, before different views on production volume and schedule emerged during detailed negotiations, said the people, who asked not to be identified as the talks are confidential. The impasse cut pledged supplies to less than 5 gigawatt hours, they said.