Volkswagen may withdraw production from Germany and Eastern Europe while maintaining a shortage of gas
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German automaker Volkswagen may withdraw production from Germany and Eastern Europe if problems with gas supplies persist in the region. Writes about it Bloomberg referring to a statement by VW’s purchasing director, Geng W. He said that this is one of the options the company is considering in the medium term in case the gas shortage lasts much longer than this winter. Now the main VW plants are located in Germany, the Czech Republic and Slovakia.
According to Reuters Citing a VW executive who asked to remain anonymous, the company could maintain production for the next five to six months if Germany continues to fill gas storage, but rising energy prices and continued supply chain difficulties pose a risk to it. The top manager expects gas shortages by June 2023 if supplies from Russia via Nord Stream 1 do not resume.
European countries and companies are preparing for winter, building up gas reserves in the face of reduced supplies from Russia. According to Gas Infrastructure Europe, gas storage facilities in Germany are now 90% full.
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