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Discussion Starter · #1 · (Edited)
VW may shift output from Germany over gas shortage
VW may shift output from Germany to countries with better access to gas.




Volkswagen Group could shift production out of Germany and eastern Europe if a shortage of natural gas persists, the latest sign that the energy crisis unleashed by Russia's invasion of Ukraine threatens to shake up Europe's industrial landscape.

VW said Thursday that moving production was one of the options available for it in the medium-term if gas shortages last much beyond this winter.

VW has major factories in Germany, the Czech Republic and Slovakia, which are among the European countries most reliant on Russian gas.

"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, said in a statement.

Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a VW spokesman said.

VW operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals.

VW said it should be able to maintain production in the next 5 to 6 months if Germany continues to fill its gas reserves but rising energy prices and instability in supply chain networks present a risk to global production.

Suppliers at risk
Suppliers in energy-intensive areas such as glass and chemicals will not be able to shoulder the gas and electricity price increases for long, VW executives warned.

Though most car parts made in Europe are used by European plants, some are shipped to plants abroad. Just one missing piece can bring production to a standstill, as shown by the fallout from the semiconductor shortage of recent years.
VW said it was concerned about the effect high gas prices could have on suppliers.

"Politicians must also curb the currently uncontrolled explosion in gas and electricity prices," said Thomas Steg, the company's head of external relations.

"Otherwise, small and medium-sized energy-intensive companies in particular will have major problems in the supply chain and will have to reduce or stop production," he said.

Summer shortages
Separately, another VW executive Michael Heinemann, who is spokesman for VW Kraftwerk, told a media call that the automaker will reduce its natural gas intake by over 20 percent, the minimum set by the government.

In total, it could reduce its consumption across European locations by a mid-double-digit percentage figure, he added, without specifying an exact number.

Russia's decision to throttle gas supplies to Europe in response to European sanctions against Moscow over the invasion of Ukraine has raised concerns that Germany might be forced to ration its fuel.

However, recent news that gas storage levels hit 90 percent ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia.
European gas storages are now 85.6 percent full, with stocks in Germany close to 90 percent, data from Gas Infrastructure Europe showed, but what the picture will look like after winter is less clear.

If gas deliveries to Germany from Russia through the Nord Stream 1 pipeline do not resume, VW expects natural gas shortages from June of 2023.
Reuters contributed to this report

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Sounds very expensive, up rooting car production moving sticks to another country, but then will you still have a business to run if your products are getting priced out of the market that nobody can afford to buy can't complete on price in the market place.

What a dreadful position to be in, Ukraine/Russian war may carry on for decades like the Afghan war did for 20 years in Europe, the Ukrainians are quite resilient.

If VW do nothing stay in Germany they risk not being a viable concern going out of business, especially as the cash strapped consumer is hit with sky high inflation tightening their cash belts , and VW already have to sell very expensive £57,000 ($61,000) VW ID Buzz EV's as the European Union bans ICE new car sales in the future. VW are getting into bed with Ford wonder how this affects the Blue Oval?
 

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Discussion Starter · #4 ·
Can't VW just put some solar panels on the factory roof and add a few windmills in the parking lot to achieve greener pastures??
Good question, VW already have already investmed14 billion euros in decarbonization by 2025. Green electricity for vehicle’s use phase: Volkswagen is the first car maker to support the extensive expansion of wind farms and solar plants in Europe, the biggest problem is what happens when the wind stops blowing do you shutter the plant on windy days there is no spare capacity to back it up in Germany at the moment.

Part-timers wind farms failed to deliver enough energy, Germany re-opened most of its mothballed coal fire burning stations this year shutting the Wolfburg VW plant down every time the wind does not blow is not one VW want to take . Burning dirty coal has be the No1 source of producing electric power in Germany this year, Germany pulled the plug on nuclear power after what happed in Japan, is now looking to build use build Nuclear power stations has reversed its policy this year, it coal burnt electric power is also now being used to prop up supply France as well.
 

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Discussion Starter · #8 · (Edited)

RIP a proper Beetle.

Bring back the cheap ole original Mexican classic Beetle that cost 68,000 pesos ($6,500), the new bugs were crap nobody wanted them.

Can't be beaten on cost sunny hot weather ideal for solar panels, just a plateful of tostadas & tacos washed down with a Corona, and the Mexicans will build you anything as long as they have cheap food & beer on are table they are happy very cheap on labor costs, if you keep them sweet
 

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I don't have time to read the entire article and maybe this is addressed - but is this VW's big chance to get around expensive German labor?
Chyyynnnaaa! Change, change we can believe in.
 

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Discussion Starter · #12 ·
VW are pretty good it's Volkswagen Poznań Foundry Aluminium, from which components for the production of cars are made, is melted in gas furnaces. In the past, during the smelting process, significant amounts of heat were released directly into the atmosphere. Now, it will be directed to an exchanger, where it will heat water. Through another exchanger, it will be also transferred to the heating installation of Veolia Energia Poznań.

It will soon be able to power thousands of local homes while reducing its CO2 emissions, as the city website informs. This is thanks to an innovative solution that Volkswagen implements in partnership with Veolia Energia. As a result, the company will recover nearly 16,000 megawatt hours of thermal energy from aluminium smelting every year and put it to good use in several buildings.

The Volkswagen Poznań Foundry is one of the largest in the sector and in Europe ICE furnaces & foundries won't be used as much maybe in the future, it produces components for the newest, fully electric cars of the Volkswagen Group.

Don't think VW would make stories up would want to move plants elsewhere just for the fun of it, might be a hidden excuse to bring sky high German labor costs down that will price expensive German EV price down. VW are way off the mark at the moment, employ to many Germans compared to Tesla

Tesla says it can already produce a Model Y SUV in 10 hours at its new factory in Gruenheide near Berlin, whereas it can take VW three times as long to make its ID.3 full-electric hatchback. VW are keen to catch up Tesla quick production by using introducing giga casting & robots and replacing it expensive over manned German plants. VW now aims to slash production times at its new Trinity plant by using techniques such as large die casting and cutting the number of components in its cars by several hundred. The factory should be up and running in VW's home city of Wolfsburg in 2026. Pressure is on German automakers to both master and ramp up EV production has been intensified by Tesla's presence in the country and VW Group CEO Herbert Diess has warned Germans must speed up to avoid getting beaten on their own turf.

While VW can produce certain models such as the Tiguan or Polo in 18 and 14 hours in Germany and Spain respectively, its ID3, made in Zwickau, a factory juggling six models from three VW brands, still takes 30 hours to put together.

Not many Germans in the Tesla factory.

Tesla's Gruenheide press shop can produce 17 components in under six minutes. With six more giga presses on the way, Tesla will soon be making the front of the car with the giga press too. The giga casting technique that VW plans to adopt was popularized by Tesla as an alternative to the more labor-intensive method of assembling multiple stamped metal panels. While VW can produce certain models such as the Tiguan or Polo in 18 and 14 hours in Germany and Spain respectively, its ID3, made in Zwickau, a factory juggling six models from three VW brands, still takes 30 hours to put together Tesla says it can already produce a Model Y SUV in 10 hours at its new factory in Gruenheide near Berlin.

VW might be using this as an excuse to shed some German jobs, after all VW is the company that gave the world the diesel cheat devices.
 

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RIP a proper Beetle.

Bring back the cheap ole original Mexican classic Beetle that cost 68,000 pesos ($6,500), the new bugs were crap nobody wanted them.

Can't be beaten on cost sunny hot weather ideal for solar panels, just a plateful of tostadas & tacos washed down with a Corona, and the Mexicans will build you anything as long as they have cheap food & beer on are table they are happy very cheap on labor costs, if you keep them sweet
We get the Golf, Jetta and Tiguan from there. Learned to drive stick in a Bug like that in the Yucatan at 2AM, 1992
 

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Could be they have their own power plants (just conjecture) - I know manufacturers with massive plants sometimes find it more beneficial to generate their own electricity.
 
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What on earth are they still doing in 2022 needing natural gas to manufacture something? That’s my question.

(Relying mainly on, I meant.)
Any type of foundry/forging/heat treating will still require large amounts of fuel (assuming its nat gas, which is generally the cheapest and most abundant).
 

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Transitioning away from fossil fuels (a misnomer that has got to go) = de-industrialization
Why is "fossil fuels" a misnomer?
Webster's Dictionary states "a natural fuel such as coal or gas, formed in the geological past from the remains of living organisms ". Seems like an accurate description to me and the rest of the world.

Also, your statement is not entirely accurate, perhaps re-industrialization. Industrialization doesn't require fossil fuels, just external energy sources. That can be wind, solar, geothermal, hydroelectric or nuclear. Fossil fuels are finite, unless we have a spare billion years to wait between fill ups (and we thought charging an EV took a while!), it's time to transition to local energy development instead of wasting fuels transporting fuels.
 

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Why is "fossil fuels" a misnomer?
Webster's Dictionary states "a natural fuel such as coal or gas, formed in the geological past from the remains of living organisms ". Seems like an accurate description to me and the rest of the world.

Also, your statement is not entirely accurate, perhaps re-industrialization. Industrialization doesn't require fossil fuels, just external energy sources. That can be wind, solar, geothermal, hydroelectric or nuclear. Fossil fuels are finite, unless we have a spare billion years to wait between fill ups (and we thought charging an EV took a while!), it's time to transition to local energy development instead of wasting fuels transporting fuels.
If it comes from the remains of living organisms like trees and animals, then should it be a natural resource? It's GREEN energy!!!
 
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