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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.

Volkswagen may soon have remedy for more cheating diesels

Nearly a half-million motorists who own Volkswagens equipped with 2.0-liter engines have known for a few weeks the company might wind up buying back their vehicles as part of a settlement surrounding the company's emissions cheating. But about 85,000 drivers who own similarly afflicted diesels with 3.0-liter engines have been stuck without a remedy. They may not be waiting much longer. Bloomberg reports that Volkswagen will soon propose a fix for vehicles, including those from Audi and Porsche, equipped with 3.0-liter engines that will include new software and a new catalytic converter for the vehicles. Discussions with federal regulators are ongoing, according to the news outlet. "We are cooperating with the regulatory agencies and working with them on an approved solution," says Audi spokesperson Mark Clothier. "Beyond that, we cannot comment on ongoing investigations." Regulators have alleged that the company's 3.0-liter engines contain "defeat devices," illegal software that allows a vehicle to detect when it's undergoing an emissions test and turn off pollution control during real-world driving. The defeat device allows these vehicles to increase emissions of nitrogen oxide up to nine times the Environmental Protection Agency's allowable threshold. Affected 3.0-liter vehicles include the 2014 Volkswagen Toureg, 2015 Porsche Cayenne and the 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5. Volkswagen is slated to finalize its plans for buying back the afflicted 2.0-liter cars and potentially offer those motorists "substantial compensation" for their troubles by June 21, and it's possible that a formal announcement on the 3.0-liter vehicles would come at the same time. Related Video:

Porsche launches classic racing program with restored 917k

Porsches is launching a historic racing program to support private owners of its competition classics. The program will offer customers support restoring and repairing their racecars. It'll also help get vintage vehicles up to spec for modern safety equipment. The company is developing a network of trusted specialists, and will continue supplying spare parts and trackside technical assistance at major historic events. Porsche will also offer to store and maintain privately owned classic racers at its facilities – like the new Porsche Experience Center that's soon to open in Los Angeles – putting them on display for visitors to admire and even transporting them to and from the track for racing events. To highlight the newly enhanced program, Porsche is showcasing this restored 917K. This particular example, resplendent in iconic Gulf livery, won the thousand-kilometer race at Spa in 1971, and was entrusted a few years ago to Porsche Motorsport North America for restoration. It'll be participating in the Rennsport Reunion at Laguna Seca this weekend, but whether or not you'll be in Monterey for the event, you can check it out in the image gallery above. Restored Porsche 917K returns to US race track after 40 years Porsche provides new services for historic motorsport Stuttgart. Historic Porsche race cars represent many victories at the 24-hour classics of Le Mans and Daytona. And they also celebrated memorable successes at 1,000-kilometre events on storied circuits such as the Nurburgring and Spa-Francorchamps. To ensure that these vehicles can still be admired at race tracks today, Porsche now also offers customers a comprehensive service for historic motor racing in Germany and the USA. The priorities of the new business field are to restore vintage race cars as true to the original as possible as well as to repair and maintain them. "These vehicles have written motorsport history and have gained in value, at times markedly, in recent years," says Jens Walther, President & CEO of Porsche Motorsport North America in Santa Ana/California. "The historic motor racing scene has an extremely strong following in the USA, but many of these vehicles can also be seen on European race tracks. An increasing number of owners are now recognising how important it is for future gain that such vehicles undergo a true to original restoration." The figurehead for the new business service is the now completed restoration of a Porsche 917K.