VW may shift output from Germany over gas shortage

Volkswagen Group could shift production out of Germany and eastern Europe if a shortage of natural gas persists, the latest sign that the energy crisis unleashed by Russia’s invasion of Ukraine threatens to shake up Europe’s industrial landscape.

VW said Thursday that moving production was one of the options available for it in the medium-term if gas shortages last much beyond this winter. VW has major factories in Germany, the Czech Republic and Slovakia, which are among the European countries most reliant on Russian gas.

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.

Jone Mark

A network of suspended footbridges connects the towers

VW operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. VW said it should be able to maintain production in the next 5 to 6 months if Germany continues to fill its gas reserves but rising energy prices and instability in supply chain networks present a risk to global production.

The ability to expand new customers is still limited

It is a fact that the ability to access and expand new customer groups and projects of many construction businesses is currently facing difficulties due to the way of searching, assessing, and approaching new opportunities in the market.

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Most construction enterprises have not yet paid attention and focused on researching how to do and invest in Marketing. While customers are foreign investors, it is difficult for them to find information and approach businesses early due to obstacles in terms of distance, language, culture…

Besides, the ability to convince customers to use products and services in the construction industry is still limited. Most businesses often only focus on reducing prices, promoting personal relationships, or using outside influences to influence to push products faster. These factors are becoming increasingly outdated, do not increase profits, and develop sustainably based on the capacity and value of the business.