Mercedes -Benz is hoarding parts of natural gas production. I hope that even if Germany implements a strict fuel distribution system, it can ensure that production work will be maintained for several weeks. Mercedes -Benz produces more parts in the casting plant in UNTERTUERKHEIM to increase the inventory in the United States and Chinese factories for gearboxes, car shafts and transmission parts.
Joerg Burzer, director of Mercedes -Benz production, said that even if the shortage of natural gas in Germany has caused its local production business to be suspended, the company can continue to operate the company’s automobile manufacturing business in Alabama and Beijing in the United States.
In addition to supply risks, the industry is facing soaring costs due to rising energy prices. in August, Germany’s producer price index rose nearly 46 percent, the highest year-over-year increase since the statistic began in 1949, sparking deep concerns about future competitiveness.
Joerg Burzer said Mercedes has already reduced its natural gas usage by 10 percent and could cut it in half if necessary. In a critical situation, Mercedes-Benz needs to ensure that it reserves about 10 percent of the natural gas it needs for normal operations.
Joerg Burzer noted, “In a natural gas shortage emergency, we can replace a significant amount of natural gas with fossil fuel energy and are ready to make that shift and ready to go. We are very certain that we will not have a zero supply of natural gas.”
Joerg Burzer warned, however, that all contingency plans to prevent production shutdowns depend on suppliers delivering parts successfully. As a result, the company has formed a 25-member Energy Crisis Task Force to determine which suppliers in Germany would be at risk in implementing a gas rationing system and is in discussions with some suppliers to move production work out of Germany. “The gas supply in the south and southwest of Europe is a little less at risk. If there is an opportunity for our suppliers to shift production, we will talk to them.”
As recently as Sept. 22, Volkswagen Group executives also said the company was working on measures to deal with a possible gas crisis, such as stocking parts on ships and trains in the short term and turning to overseas suppliers in the medium term. Volkswagen Group said the company has already reduced its gas consumption by more than 20 percent and may reduce it further.
