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Car producers are looking at energy options to replace Russian gas

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Russia cuts gas network to Europe

Relations between Russia and Ukraine have been hostile since 2014. A recent Russian military buildup on the border of Ukraine escalated tensions between the countries and strained their relations; the country also stopped gas delivery to European countries.

Finally, Russia invaded Ukraine on 24 February 2022. This event caused Europe’s largest refugee crisis since World War II, with more than 5.5 million Ukrainians leaving the country.

Energy options for European countries

Some weeks ago, Russia upped the ante in response to the west attack. Gazprom, a state-owned energy giant, stopped sending gas to Bulgaria and Poland.

Russia justified this event, saying that both countries missed the deadlines the government set for paying only in roubles.

As a result, European industries and companies are looking at diversifying energy sources. Especially Russia threatened Germany. It could stop receiving gas supplies from Russia.

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Car producers alternatives

Mercedes-Benz is looking at energy alternatives in case Russia cuts its gas deliveries and is working closely with German authorities to ensure energy supplies.

Every company is looking at options for diversifying energy sources. It is still too early to say precisely which scenario will happen, but we are carefully looking at this.

Mercedes-Benz, CEO Ola Kaellenius.

As a result, more German automakers and suppliers are preparing for the possibility that Russia will cut off gas supplies to Europe.

Audi, Volkswagen Group’s premium brand, explains that the gas supply for VW Group plants is secure. Although the producer is in regular contact with the authorities, gas network operators, and suppliers to assess further developments and take any necessary measures.

On the other side, BMW also is monitoring the situation closely with the authorities. The company only covers 20 percent of its energy needs with gas. It does not require large quantities, but some of its suppliers do, especially in the semiconductor production.

Finally, it is essential to remark that over half of the energy consumed by Germany’s carmakers is from natural gas.

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