VW Could Move Production Out Of Germany Due To Natural Gas Shortages | Carscoops carscoops
from Russia’s decision to limit gas exports. Russia is the primary source of gas in Germany and recently cut off the Nord Stream 1 pipeline. The closure was initially meant to be temporary and put in place to allow repairs to be made, but was later extended indefinitely.
“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,” Volkswagen said in a statement.
The carmaker claims it might be able to maintain production for the next six months if Germany carries on filling its gas reserves, which are close to 90 percent full, but that number could fall drastically over winter. Volkswagen has already pledged to reduce its gas consumption by at least the 20 percent target set by Germany’s government.
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