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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “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, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% 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. 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 Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

Lamborghini agrees to produce Urus in Italy

The Lamborghini Urus is apparently on the way, and it looks like it will be built in Italy. The news comes from Bloomberg, which claims Lambo CEO Stephan Winkelmann and Audi CEO Rupert Stadler will be joined by Italian Prime Minister Matteo Renzi on Wednesday to announce a series of tax breaks to bring SUV production to Italy. The report cites multiple "people familiar with the matter." The details of the deal include up to 500 new jobs in exchange for $87 million in tax breaks along with "other benefits," according to Bloomberg. Just over a year ago, it was looking like Urus production was headed for Slovakia, where it'd be built alongside its MLB platform-mates, the Audi Q7, Volkswagen Touareg, and Porsche Cayenne. News of Italy's bid surfaced this spring. We'll be sure to keep an eye out for any official news as it becomes available. Related Video:

Audi Nanuk Quattro Concept is a wild surprise ahead of Frankfurt

Volkswagen Group Night ahead of the Frankfurt Motor Show always has some surprises, the first of which this year is the Audi Nanuk Quattro Concept. The all-wheel-drive, turbo-diesel-powered supercar is similar to the Giugiaro Parcour Concept that was unveiled earlier this summer. In fact, the Parcour's creator, Italdesign Giugiaro, penned the Nanuk, and we suspect much of the former found its way into the latter - with some changes, of course.
The diesel engine, a departure from the Parcour, is a twin-turbocharged 5.0-liter V10 TDI unit that develops 544 horsepower and a hole-digging 738 pound-feet of torque, which make the 4,189-pound all-road vehicle able to dispatch 0-62 miles per hour in 3.8 seconds and go on to a 190-mph top speed. Fuel consumption is a relatively low 30 miles per gallon for a car with this much performance.
The Nanuk showcases Audi's Quattro, though it uses a specially designed version of the all-wheel-drive system to get the job done. Audi's next generation of adaptive air suspension is featured as well, which fits the crossover nature of the Nanuk. Drivers are given a range of 2.76 inches of height adjustment, though Audi doesn't mention the car's minimum or maximum ground clearance.