Volkswagen is considering shifting production if gas shortages and high prices continue

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The company said Thursday that shifting production is a medium-term option if the gas shortage persists beyond this winter. The carmaker has large plants in Germany, Slovakia and the Czech Republic, which are among the European countries most dependent on Russian gas.

“In the medium term, we are focusing on greater localization, relocation of production capacity or technical alternatives, similar to the usual practice in the face of problems related to the shortage of semiconductors and other recent supply chain disruptions,” said Geng Wu, head of the Volkswagen purchasing department.

Russia’s decision to suspend gas supplies to Europe has raised concerns that Germany may be forced to ration its fuel volumes.

German plastics manufacturer “Covestro AG” does not foresee a gas shortage this winter, but at the same time it will not make investments for growth in Europe due to high energy costs, according to company CEO Markus Steilemann. Growing markets are mainly in Asia, where prices are significantly lower, he admitted.

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