UPDATE 5-VW, suppliers settle dispute after marathon talks
* Settlement follows all-night talks between VW, suppliers
* Six plants, 28,000 workers affected by supplier dispute
* VW needs to trim Golf output on falling demand - analyst
* Agreement sees suppliers stay on for at least 6 years - paper (Adds details of dispute in Brazil)
By Andreas Cremer
BERLIN, Aug 23 (Reuters) - Volkswagen and two of its parts suppliers on Tuesday resolved a contract dispute that had hit output at more than half of the carmaker's German plants and threatened to undermine its recovery from a diesel emissions scandal.
After more than 20 hours of negotiations that went on through the night, VW said it had settled its differences with CarTrim, which makes seats, and ES Automobilguss, which produces cast iron parts needed to make gearboxes, but gave no details. The suppliers confirmed an agreement had been reached.
The conflict had threatened VW's profitability following last year's diesel emissions test cheating scandal and also risked hurting hundreds of other VW suppliers.
The suppliers were seeking compensation for lost revenue they said ran into tens of millions of euros after VW cancelled a contract. Continuación...