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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.

Submit your questions for Autoblog Podcast #344 LIVE!

We're set to record Autoblog Podcast #344 tonight, joined by Doug DeMuro, author of Plays With Cars, formerly of Porsche Cars North America, and all-around swell guy. You can drop us your questions and comments via our Q&A module below, and we'll give them extra-diligent attention. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
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$76,400 Porsche S E-Hybrid will debut in Paris

The 2015 Porsche Cayenne S E Hybrid will be an all-new model, one that adds a plug – and the required associated technological bits – to the currently available Cayenne S Hybrid. The most important of those bits is a 10.8-kWh lithium-ion battery, but Porsche's Calvin Kim told AutoblogGreen that the SUV's electric-only range is still pending certification, but Hybrid Cars says that Porsche is estimating it'll be somewhere between 11 and 22 miles, "depending on the style of driving and route topography." Other than the new battery, the electric motor has been upgraded to a 95 horsepower/70 kW unit (up from the 47-hp/34 kW motor in the Cayenne hybrid without a plug). The overall powertrain now puts out a total of 416 hp and can go from 0 to 60 miles per hour in 5.4 seconds. Alongside the electric parts, there's a 3.0-liter supercharged V6 engine and an 8-speed automatic transmission. You can find all of the E-Hybrid's available specs here and stay tuned for more information on the new plug-in SUV when it makes its debut at the Paris Motor Show in early October. The SUV will go on sale in the US on November 1, 2014 with a starting MSRP of $76,400, plus a destination charge of $995. In a new press release (available below), Porsche is also proudly saying, once again, that it will be the world's only automaker offering three plug-in hybrid models, once the Cayenne S E-Hybrid hits the market. The others are the Panamera S E-Hybrid and the 918 Spyder. How long will this reign at the top last? World premiere of the Porsche Cayenne S E-Hybrid in Paris Leading the industry: Porsche offers three plug-in hybrid models Stuttgart/Atlanta. The new Porsche Cayenne S E-Hybrid celebrates its world premiere at the Paris Motor Show. It is the world's first luxury SUV to offer a plug-in hybrid drive, setting new standards in its segment. The Cayenne S E-Hybrid also makes Porsche the leading manufacturer of plug-in hybrid vehicles: Complementing the Panamera S E-Hybrid and the 918 Spyder, Porsche is the only manufacturer worldwide to offer three plug-in hybrids. In addition to the Cayenne S E-Hybrid, Porsche is presenting the other models that comprise the new generation of Cayenne including the Cayenne S, Cayenne Turbo, and Cayenne Diesel. Increased efficiency and performance, even more precise handling, a sharper design and a broadened array of standard equipment are its defining features.