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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.

Watch Jay Leno's Garage work on a Porsche 911 and others

Jay Leno doesn't just own a bunch of cars – he restores them. (Or has people who restores them, at any rate.) For this latest video, he's showing us some of the projects he and his team are currently working on. The tour-de-garage starts with a 1953 Cunningham that had been in storage since '68, complete with a copper grille ready for plating and a 331 Hemi V8. Jay says that every one of the cars that Briggs Cunningham made is still on the road – but that's just one of the dozen or so projects Jay and company are working on. There's a suitably brown '71 Porsche 911 T in near-original condition having sat untouched parked underground in Beverly Hills for decades, and a '58 Chrysler Imperial convertible once driven by Clark Gable and Frank Sinatra, and now getting a brake upgrade. There's a Volvo 122 wagon that's been stripped down, media-blasted, and powder-coated, a thousand-horsepower Rolls-Royce, a 1960 Nash Metropolitan, a supercharged Mercedes-Benz 600 Pullman, and a 1914 Detroit Electric. And those are just the four-wheeled automobiles. Over in the two-wheeler section there's a pair of Brough Superiors, a BSA, an Indian, and a custom racing sidecar that Jay's mechanic Bernard is working on. In short, Jay Leno's Garage isn't just one where vehicles are kept – it's one where vehicles are brought back to life. Related Video: News Source: Jay Leno's Garage via YouTube Chrysler Mercedes-Benz Porsche Classics Videos Jay Lenos Garage bsa

VW rearranges leadership as brand focuses on electrification

The Volkswagen overhaul continues into next year with a raft of new executive appointments that CEO Mattias Muller says will enable "Faster decision-making and more efficient action." One of the headline moves is Porsche head of design Michael Mauer taking over VW Group design, succeeding Walter de Silva who retired in early November after running the Group's styling bureau since 2007. Among the sheetmetal on Mauer's resume are the Mercedes SLK and SL from the late nineties, the 2007 Porsche Cayenne, the Panamera, and, most recently, the 918 Spyder. He will retain his current role at Porsche in addition to the new responsibilities. Here's hoping some of the excitement seen in the 918 filters its way down to VW's recently mundane offerings. Dr. Ulrich Eichhorn was head of Group R&D from 2000 to 2003, then went to Bentley, then left the company for the German Association of the Automotive Industry in 2012. He has been lured back to his old role in charge of Group R&D, taking over the shoes recently worn by Dr. Ulrich Hackenberg, who resigned in early December while still suspended over his involvement in the diesel emissions fiasco. Ralf-Gerhard Willner takes over Group Product and Modular Toolkit Strategy, after leading development vehicle concept divisions at Audi and VW, and being technical director at Italdesign Giugiaro. He will play a huge role as VW evolves and expands its current platform strategy to include purpose-built electric cars and flat batteries. All those bottoms will be in chairs in Q1 of next year. The number of department heads that report directly to Muller has also been cut, giving Muller more time to focus on "overarching issues of the future." VW says that primary among them will be technology issues from EVs to digital integration. Back in October the company hired Thomas Sedran away from Opel as a lead strategist, his job being to figure out how each of those technical departments and the Group's brands navigate the marketplace and those "issues" from now until 2025. The press release below has more. Related Video: Volkswagen Group continues structural and staff realignment- Functions in CEO's area of responsibility reorganized- Muller: "Faster decision-making and more efficient action"Wolfsburg, 17 December 2015 - The Volkswagen Group is becoming more streamlined and speeding up its internal decision-making process. To that end, functions in the area of responsibility headed by CEO Matthias Muller are being restructured.