Volkswagen is considering moving car production away from Germany if current problems with natural gas supplies extend into 2023.
The drastic plan is one of several being discussed at Wolfsburg and could potentially result in Volkswagen switching production for several model lines from its German and Eastern European plants to other VW Group factories in Belgium, Portugal, and Spain, Bloomberg reports.
Like many northern European manufacturing firms, VW is suffering 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. The decision is widely believed to be a political move designed to punish western countries for imposing sanctions on Russia for its invasion of Ukraine, and will cause serious gas shortages from June 2023 if the line isn’t re-opened, VW says.
Read Article