Volkswagen Group may shift manufacturing out of Germany and jap Europe if a scarcity of pure fuel persists, the newest signal that the vitality disaster unleashed by Russia’s invasion of Ukraine threatens to shake up Europe’s industrial panorama.
VW mentioned Thursday that shifting manufacturing was one of many choices out there for it within the medium-term if fuel shortages final a lot past this winter.
VW has main factories in Germany, the Czech Republic and Slovakia, that are among the many European international locations most reliant on Russian fuel.
“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,” Geng Wu from Volkswagen Consulting, the automaker’s inhouse consultancy, mentioned in a press release.
Southwestern Europe or coastal zones of northern Europe, each of which have higher entry to seaborne liquefied pure fuel cargoes, might be the beneficiaries of any manufacturing shift, a VW spokesman mentioned.
VW operates automobile factories in Portugal, Spain and Belgium, international locations that host LNG terminals.
VW mentioned it ought to have the ability to keep manufacturing within the subsequent 5 to six months if Germany continues to fill its fuel reserves however rising vitality costs and instability in provide chain networks current a threat to world manufacturing.
Source: europe.autonews.com