Posted: 27.09.2022 15:38:00

Volkswagen ready to stop production in Europe over gas shortage

German car manufacturer Volkswagen AG has announced readiness to close its plants in Europe and move production beyond its borders if difficulties with gas supplies persist, TASS reports


Bloomberg cited the head of the company's public procurement department, Gen Wu, as saying, “As medium-term alternatives [to EU assembly], we will focus on greater localisation [of production], relocation of capacity, search for technical alternatives by analogy with the solutions used to overcome the consequences of the shortage of semiconductors and other recent gaps in supply chains.”

The company will introduce such measures if difficulties with gas supplies continue to be observed for ‘an extended period of time beyond next winter’, the agency clarified. As reported, ‘Volkswagen’s main plants in Germany, the Czech Republic and Slovakia, as well as the company’s energy infrastructure in southern Europe’ may close.