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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 imagines a world where mechanics are zombies

Warewolves, vampires, lab-created monsters... they've all come and gone from the silver screen, but the latest trend in apocalyptic popular media centers around zombies. And that's the theme Audi has tapped for its latest ad. The television commercial is called "Mechanics," and as you may have guessed by now, they're the zombies the German automaker is depicting. The spot was created to encourage Audi owners (like the one in this A5) to have their vehicles serviced at authorized dealers rather than taking them to independent garages that may not be after your brains, but might like a crack at your pocket book, at least (as if dealerships aren't). The commercial was created for Audi by Thjnk Berlin GmbH and directed by Sebastian Strasser for RadicalMedia, and is worth a watch for the laugh alone. Related Video:

Audi A3 G-Tron offers big range, few emissions

Audi is exploring a variety of sustainable transportation technologies beyond the traditional diesel, hybrid, plug-in and electric options, including the compressed natural gas A3 Sportback G-Tron that debuted today at the Geneva Motor Show.
The most interesting thing about this rather innocuous-looking A3 Sportback is that when run on Audi e-gas, the car becomes completely carbon neutral, emitting no more CO2 than was chemically input in this special fuel's production. Audi has already broken ground on a new plant - powered by renewable energy, of course - that uses electrolysis to produce e-gas, which could then be made available through any natural gas distribution network.