If there is a natural gas shortage, Volkswagen may move manufacturing out of Germany and eastern Europe. This is the most recent indication that the energy crisis brought on by Russia’s invasion of Ukraine threatens to completely alter Europe’s economic structure.
The largest automaker in Europe, VW, stated that shifting manufacturing was one of its possibilities if gas shortages persisted far into this winter. Among the European nations most dependent on Russian gas are Slovakia, the Czech Republic, and Germany, where the carmaker has significant operations. Volkswagen’s director of buying, Geng Wu, stated in a statement:
“As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions.”
Germany could be compelled to ration its gasoline as a result of Russia’s intention to restrict gas supply to Europe. Fears of severe shortages this winter have been allayed by the reports that gas storage levels are 90% ahead of plan. However, Germany will have difficulty refilling depleted supplies next summer without contributions from Russia.
A Volkswagen spokeswoman said that any manufacturing move may benefit coastal regions in Southwestern Europe or Northern Europe, both of which have greater access to seaborne liquefied natural gas shipments. In nations with LNG ports like Portugal, Spain, and Belgium, the Volkswagen company already runs vehicle manufacturing there.
Germany could be compelled to ration its gasoline as a result of Russia’s intention to restrict gas supply to Europe. Fears of severe shortages this winter have been allayed by the reports that gas storage levels are 90% ahead of plan. However, Germany will have difficulty refilling depleted supplies next summer without contributions from Russia.
A Volkswagen spokeswoman said that any manufacturing move may benefit coastal regions in Southwestern Europe or Northern Europe, both of which have greater access to seaborne liquefied natural gas shipments. In nations with LNG ports like Portugal, Spain, and Belgium, the Volkswagen company already runs vehicle manufacturing there.
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