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Volkswagen is thinking about moving production from Germany to the southwest of Europe due to lack of gas

The Volkswagen AG auto concern admits the possibility of transferring production from Germany and Eastern Europe if the gas shortage in the region creates too many difficulties.

According to the company’s purchasing director Geng Wu, this option seems likely in the medium term, Bloomberg reports.

In addition to Germany, Volkswagen has production facilities in the Czech Republic and Slovakia. The dependence of these countries on gas supplies from the Russian Federation is extremely high, the agency notes.

“As an alternative for the medium term, we are thinking about more localization of operations, relocation of production facilities or technical options, which have already become common practice in the context of problems related to the shortage of semiconductor components and other supply chain difficulties,” said Geng Wu.

It is reported that the main beneficiaries of the relocation of the automaker’s production may be the regions of south-western Europe or northern European countries with access to the sea. This is due to the fact that they have access to liquefied natural gas (LNG) supplies, VW explained. The auto giant already has factories in Portugal, Spain and Belgium, which have terminals for receiving LNG.

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