Volkswagen may leave Germany if natural gas supply concerns last until 2023.
The concept is one of several being studied at Wolfsburg and might result in Volkswagen moving production of multiple model lines from Germany and Eastern Europe to Belgium, Portugal, and Spain, Bloomberg reports.
VW suffers from Russia's move to curb gas shipments, like many northern European manufacturers. Russia is Germany's principal gas supplier and recently shut down Nord Stream 1. The interim closure was prolonged indefinitely to allow for maintenance.
The decision is believed to be a political move to punish western countries for imposing sanctions on Russia for its invasion of Ukraine. If the line isn't re-opened, VW believes gas shortages would begin in June 2023.
“As mid-term alternatives, we're concentrating on increased localization, relocation of production capacity, or technical alternatives,” Volkswagen added.
The manufacturer estimates it can maintain output for the next six months if Germany continues to replenish its gas reserves, but that figure might plummet dramatically throughout winter. Volkswagen has vowed to lower its gas use by at least 20%.