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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.

Volkswagen rolls out all-new Polo R WRC

Volkswagen may have ruled out producing a road-going Polo more potent than the new GTI, but on the rally stage, the Polo R WRC has proven absolutely dominant. Introduced to the World Rally Championship in 2013, the Polo R won ten out of the baker's dozen rallies in its debut season, and all but one last year to win both titles two years running. That's quite an act to follow, and the task falls to the machine you see here. The new second-generation Polo R WRC was just revealed at Autostadt in Wolfsburg. The rally machine has been substantially reworked for 2015, with a new livery, new bodywork and new oily bits. In fact, Volkswagen says it has revised three quarters of the components, and while it has not yet detailed the "many new ideas [implemented] under the bonnet," it has identified the hydraulic gearbox as "the biggest innovation." Further details are still to come, but this is our first look at the new machine with which Sebastien Ogier, Jari-Matti Latvala and Andreas Mikkelsen – who finished last year's championship in first, second and third, respectively – will tackle this year's championship, starting with the Rally Monte Carlo on January 22-25. FIA World Rally Championship (WRC) New technology, new design: presenting the second generation Polo R WRC - World premiere of the 318-hp Polo R WRC in Wolfsburg - Member of the Board, Dr. Heinz-Jakob Neusser, launches title defence - WRC kicks off with the iconic Rally Monte Carlo from 22–25 January Wolfsburg (15 January 2015). In top form, both technically and visually: Volkswagen presented the second generation of the Polo R WRC in Autostadt, Wolfsburg. The works team from Wolfsburg has its sights set firmly on another successful defence of its titles in the FIA World Rally Championship (WRC) with a new car and a new look. Volkswagen completed a clean sweep of all the World Championship titles when the Polo R WRC made its debut in 2013, before repeating this impressive feat last season. Continuity is the key to the driving line-up for 2015: double world champions Sebastien Ogier/Julien Ingrassia (F/F) and team-mates Jari-Matti Latvala/Miikka Anttila (FIN/FIN) and Andreas Mikkelsen/Ola Floene (N/N) will roll down the starting ramp and head onto the first special stage of the year for Volkswagen at the legendary Rally Monte Carlo on 22 January. "The new Polo R WRC has undergone intense further development, both on the inside and the outside," said Dr.

VW stock plummets as Euro markets open

The fallout from Volkswagen's installation of an emissions "defeat device" on nearly 500,000 diesel-fueled models in the US is already hitting the automaker hard on the German stock exchange. At one point, the share price plummeted 23 percent to erase the equivalent of $17.6 billion in value. Things eventually bounced back slightly to a still severe 19.23 percent loss, according to Bloomberg as of this writing. The scandal couldn't come at a worse time for chairman Martin Winterkorn. The VW supervisory board takes up the issue of renewing his contract on September 25, Bloomberg reports. If things get bad enough, the door could be open for a new boss to step in. Dealers in the US might start feeling the pain from this, as well. Affected 2015 VWs that are still at showrooms are now under a stop sale. Until the issue is straightened out, the Environmental Protection Agency isn't certifying the company's 2016 diesel models with the 2.0 TDI, either. The diesel emissions problem was first discovered by research from West Virginia University and the International Council on Clean Transportation. In some cases, the engines can produce 40 times more nitrogen oxides than allowed. The automaker could be on the hook for $18 billion in fines for the breach, but the actual figure is expected to be lower. In response, Winterkorn has issued a public apology and ordered an independent investigation into what happened. The EPA and California Air Resources Board have also been looking into the situation. This could become an international problem, though. According to The Detroit News, European authorities might begin similar inquires to check the automaker's diesel emissions there.