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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.

Audi planning A7 powered by fuel cell?

Back in March, Volkswagen AG CEO Martin Winterkorn voiced his doubts about the cost and infrastructure associated with building hydrogen fuel cell vehicles, but according to Autocar, that isn't stopping Audi from developing a fuel-cell version of the Audi A7. While we're inclined to take this report with a grain of salt, this wouldn't be the first time a VW executive has made seemingly damning statements about electric powertrains that later proved to be incorrect.
After speaking with Audi technical chief Wolfgang Dürheimer, Autocar reports that Audi is building a fuel cell A7 that is expected to be ready for testing by August. Like the electric E-Tron and natural-gas-powered G-Tron models, the hydrogen fuel cell Audis could, if produced, carry their own "tron" nomenclature.

CO2-neutral* Audi A3 G-Tron goes on sale in Germany

The Audi A3 Sportback G-Tron has been on our natural gas-powered radar since it was unveiled at last year's Geneva Motor Show. Just before the big show starts up again this year, Audi put the new G-Tron vehicle on sale in Germany today, starting at 25,900 euros ($35,400 US). Anyone who opts for the Audi e-gas fuel card will be able to cruise the Autobahn knowing that their emissions will be CO2-neutral. That's because Audi has built an e-gas plant in Werlte in Lower Saxony, Germany that creates a synthetic methane that is compatible with natural gas from a process that uses "green electricity" to "[bind] as much CO2 as is released when the Audi A3 g-tron is driven in gas mode." Your own A3 G-Tron doesn't burn the carbon-neutral fuel directly, but the automaker will track how much is spent using the fuel card and make sure "that exactly this amount of Audi e-gas is fed into the German natural gas network." Audi charges 14.95 euros a month to use the card. Burning that e-gas in the A3's 1.4-liter TFSI engine can put out 110 horsepower (you can also burn regular natural gas or gasoline) and offers fuel economy of between 3.2 and 3.3 kilograms of gas per 100 kilometers on natural gas Audi A3 g-tron: Advance sales get the green light Ingolstadt, 2014-02-13 Audi A3 Sportback g-tron available to order from February 13 CO2-neutral mobility with the Audi e-gas fuel card Prof. Dr. Ulrich Hackenberg: "Audi e-gas is an important pillar of our sustainability strategy" The Audi A3 g-tron is all set to hit the roads. Advance sales at dealerships in Germany will kick off on February 13. The basic price will be 25,900 euros. Using the Audi e-gas fuel card, customers can opt for Audi e-gas to power their A3 g-tron without impacting the environment if they wish. The Audi A3 g-tron forms part of a new, integrated and sustainable mobility concept from the brand with the four rings. Its 1.4-liter TFSI engine developing 81 kW (110 hp) can be operated using either natural gas, e-gas generated by Audi or gasoline. In pure e-gas mode the g-tron is entirely CO2-neutral. Audi e-gas is a synthetic methane that is produced at the Audi e-gas facility located in Werlte in Lower Saxony, Germany – the world's first industrial power-to-gas plant. An A3 Sportback g-tron fueled by Audi e-gas is currently the most environmentally friendly form of long-distance mobility.