German carmaker Volkswagen AG is considering closing European plants and moving production outside the European Union (EU) if gas supply difficulties persist. This was reported by Bloomberg, citing Gen Wu, the head of the company’s public procurement department.
As medium-term alternatives to EU assembly, we will focus on greater localization of production, redeployment of capacity, finding technical alternatives similar to solutions used to overcome the effects of semiconductor shortages and other recent supply chain disruptions.” he said.
The company plans to implement these measures if gas supply problems continue “for an extended period of time beyond next winter,” the agency said.
In this case, “Volkswagen’s major plants in Germany, the Czech Republic and Slovakia, as well as the company’s energy infrastructure in southern Europe” would be at risk of closure.