German car giant Volkswagen says that it will be able to maintain its production for at least the next 5-6 months, especially if Germany is able to continue replenishing its natural gas reserves, the news agency Reuters reports.
The situation may be confused by the continuous rise in energy prices and uncertainties in supply chains. They can contribute to production risks, the company estimates.
A fifth cut
Volkswagen anticipates that gas supply will become more difficult in June 2023, if the Nord Stream 1 gas pipeline taps remain closed, the company’s employee, who remains anonymous, states.
His assessment is based on Goldman & Sachsin to report on the situation in Germany’s gas economy, the news agency Reuters reports.
Volkswagen’s management Michael Heineman said that the company aims to reduce its dependence on gas by about 20 percent, which is the minimum goal set by the country’s government.
According to Heinemann, the company is able to cut its gas consumption in its European offices by double digits. He did not specify the figures further.
However, he stated that gas-intensive industries, such as glass and chemical manufacturing, cannot withstand continuous energy price increases for long.
Components in stock
Volkswagen protects itself from possible difficulties in the delivery of components by concentrating goods in warehouses and the feel of ship and train connections.
In the medium term, it is possible that production will be distributed to other areas.
Germany is constantly looking for alternative gas suppliers after Russia radically reduced its own supplies in response to sanctions imposed by Western countries.
European gas storages are currently 85.6 percent full. Germany’s gas reserves are almost 90 percent full.
It is then more difficult to assess the situation after winter.