German car industry prepares for Russia’s gas destruction as the Ukrainian war continues

Berlin — German automakers and suppliers said Russia is preparing for the possibility of cutting gas supplies as a result of: Ukraine conflict..

Russia’s leading state-owned energy company, Gazprom, issued a warning last week to countries supporting Ukraine by shutting down gas supplies to Poland and Bulgaria. These two countries have rejected Russia’s request to pay natural gas in rubles instead of dollars, a position favored by most European countries.

Germany, Europe’s largest economyIn particular, it depends on Russian natural gas. According to Reuters, Russia accounted for 55% of Germany’s gas imports in 2021 and 40% in the first quarter of 2022.

The German government has launched an emergency energy program calling on industry and households to save energy and reduce usage. According to the German Ministry of Economy, rationing may be imposed in the future, and if so, the industry will be the first to respond to power outages.

A spokesman for the Mercedes-Benz Group said gas plays an important role in the automotive industry, from heating production halls to running manufacturing processes. Automotive News Europe E-mail statement.

“If the gas supply is cut off, this will affect much of the economy,” a Mercedes statement said.

“We are continually looking for ways to save energy and are stepping up these efforts in light of the current situation,” he said. “We are closely monitoring the situation and are in close contact with the German government.”

BMW said electricity and gas prices are long-term hedged through various mechanisms. “We continue to closely monitor the instability and replace it with the authorities,” the automaker said.

Audi Parent company, Volkswagen GroupCan also contact authorities, network operators and suppliers on a regular basis to assess further progress early and take necessary steps.

“Currently, gas supplies to Volkswagen AG’s plants and German brands are stable,” Audi said in a statement.

“Volkswagen obtains natural gas from Germany’s interconnected grids that can cover current German demand.

“Therefore, the supply of natural gas to plants, power plants and boiler houses is guaranteed until further notice. It is up to the supplier from which source the natural gas is obtained,” Audi stated. ..

Robert Bosch said that gas supplies 20% of its energy demand, so mega-suppliers don’t need that much.

However, some suppliers, especially those involved in semiconductor manufacturing, do so.

“Now we can supply manufacturing and operating sites,” said a spokesman.

“This is due to the forward-looking procurement strategy and high levels of energy efficiency that the Bosch Group has already achieved by becoming globally climate-neutral in 2020.”

Supplier is monitoring the markets for energy sources such as gas and electricity to see what precautions need to be taken in Europe for next winter.

Bosch “is prepared for a variety of scenarios and is taking precautions to ensure that we continue to supply our customers in the event of gas supply restrictions or to minimize potential impacts.

“This can be done, for example, by using alternative energy sources. For example, oil is used instead of gas for heating, and in some cases also for thermal processes.”

ZF Friedrichshafen declined to comment on “speculative political issues,” but said he was always trying to anticipate possible developments to prepare for them.

A Continental spokeswoman said the supplier “is continuously evaluating all available options.”

Reuters and Bloomberg contributed to this report.

https://ift.tt/bMxw2Iu German car industry prepares for Russia’s gas destruction as the Ukrainian war continues

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