Daily Management Review

Volkswagen may pull production out of Germany and Eastern Europe


If the region's gas supply issues continue, the German automaker Volkswagen may stop producing in Germany and Eastern Europe.

Stephen Hanafin
Stephen Hanafin
According to Bloomberg, who quoted the purchasing director at VW, in the event that the gas scarcity lasts considerably longer than the present winter, the production stops are one of the options the company is evaluating in the medium term. German, Czech, and Slovakian plants are now VW's primary locations.

The company might continue producing for the next five to six months if Germany keeps filling its gas storage tanks, but dangers include rising energy prices and persistent supply chain issues, according to Reuters, citing a top VW executive who asked to remain unnamed.

In light of declining Russian gas supplies, European nations and businesses are hoarding gas in preparation for the next winter. Gas Infrastructure Europe reports that Germany's gas storage is currently 90% full.

source: bloomberg.com