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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.

Porsche Cayenne, Panamera production halted by flooding

If you recently ordered a Porsche Cayenne or a Panamera, delivery may take a little longer than originally expected. Automotive News reports that production of both models has been temporarily halted at the Porsche assembly plant in Leipzig, Germany as the result of supply shortages caused by flooding in the nearby Czech Republic. The reason for the stoppage is that the body of the Cayenne - currently Porsche's best-selling model - is produced at a Volkswagen plant in the Czech city of Bratislava and shipped by train to Leipzig.
The report does not indicate why Panamera production has been stopped - that the five-door's body is made at a separate location in Hanover, Germany. However pre-assembly will continue on these models. At full capacity, the Leipzig plant can produce about 450 vehicles per day, and it isn't clear how long this weather-related stoppage will last.

Porsche takes 2016 Le Mans win on last lap, Ford grabs class victory

So far, only one Japanese manufacturer has won the 24 Hours of Le Mans endurance race. That carmaker was Mazda exactly 25 years ago with the legendary, rotary-engined 787B. This year, Toyota was amazingly close to winning with their TS 050 car, piloted by Kazuki Nakajima, and it all ended in tears on the last lap. The Toyota ran smoothly for almost 24 hours, but to lose power and stall on the pit straight with five minutes to go is nothing short of catastrophic. Still, the #5 car was able to be restarted and limped across the finish line for 45th place. Toyota's #6 car had its own set of issues, as the car gained bodywork damage and also veered off track in the hands of Kamui Kobayashi. Driven to second place, the Toyota #6 passed the finish line driven by Stephane Sarrazin. For Porsche, the win with the #2 919 Hybrid was the 18th constructor title at Le Mans 24 Hours. The car was driven by Romain Dumas, Neel Jani and Marc Lieb, and it proved to be more reliable than the #1 919 with Timo Bernhard, Mark Webber and Brendon Hartley behind the wheel. The #2 Porsche and the #5 Toyota battled for the lead throughout the day. Had the Toyota not broken down, Audi would have missed a podium finish for the first time in 18 years - a great run was ruined this year by turbo trouble in the #7 R18 e-tron Quattro driven by Lotterer-Treluyer-Fassler, and the third place was taken by the #8 Audi with Lucas Di Grassi driving. Winners #LeMans24 #919Hybrid @Porsche_Team @neeljani @LiebMarc @RomainDumas but kudos to @Toyota_Hybrid team pic.twitter.com/TLRuwuSTzx — Porsche GB (@PorscheGB) June 19, 2016 ??? #LeMans24 pic.twitter.com/zUkBbA65RK — Peter Leung (@BaronVonClutch) June 19, 2016 In the GTE Pro Class, Ford had reason to celebrate: the #68 Ford GT campaigned by Chip Ganassi Racing took a class win 50 years after Ford's 1-2-3 GT40 Le Mans win in 1966. 50 years to the day following the '66 Le Mans 1-2-3, the No. 68 #FordGT has won the GTE Pro Class at #LeMans24 pic.twitter.com/jkMLuWlEYm — Ford Performance (@FordPerformance) June 19, 2016 For the full list of official results, click here.