In response to the potential disruption of gas supplies from Russia, Volkswagen Group has announced plans to modernize the power system at its largest European plant, in Wolfsburg. The move, stated by Volkswagen chief executive Herbert Diess and reported by Automotive News Europe, follows earlier intentions to convert the power plant that generates electricity entirely to natural gas in a bid to cut emissions.
Facing uncertainty about the availability of more natural gas, Volkswagen will need to continue relying on coal for a longer period. The company noted that, in light of the situation, it decided to replace its coal-fired plants so that either coal or gas can be used as needed.
Diess’s remarks, as cited by Automotive News Europe, highlight the paint department as the most energy-intensive segment at the Wolfsburg headquarters. Meanwhile, facilities producing Volkswagen cars and other brands within the group receive gas through Germany’s national gas transmission network.
In Bavaria, BMW has signaled close monitoring of the gas supply situation and ongoing dialogue with German authorities. The company stated that, in the long run, price risks for gas and electricity are hedged through various mechanisms, and that a careful, long-term approach is being taken to manage energy costs.
The Sindelfingen plant, noted by Reuters, stands as BMW’s most energy-efficient operation, generating electricity from solar panels to cover roughly 30 percent of its needs.
Mercedes-Benz plants use gas among other fuels to maintain painteries’ temperatures, with president Ola Kallenius confirming that the company is weighing options should gas supplies be interrupted. He added that all companies are seeking ways to diversify energy sources and that monitoring the situation remains essential, even as the firm explores contingencies.
Mercedes-Benz has set a target to meet 70 percent of its electricity demand from renewable sources by 2030, a goal that currently sits around the mid-40s to low-50s according to agency estimates.
Mercedes-Benz also notes that gas serves a crucial role in the automotive sector, including heating production workshops and sustaining production processes. Bosch, another major electronics and automotive components supplier, reportedly relies on gas for a portion of its energy needs, with gas being particularly important for semiconductor production, an area still experiencing global shortages in the industry.
Carbon Disclosure Project data indicate that Volkswagen was about 80 percent dependent on non-renewable energy sources at the end of 2020, with BMW at around 60 percent. Across the sector, fossil fuels remain the dominant energy source, and natural gas constitutes a significant share of consumption.
Experts interviewed for industry insights suggest that prolonged disruption to Russian gas would make it difficult to rapidly substitute electricity and heat requirements for the German automotive sector. The possibility of a production slowdown could become evident, particularly in processes with high electricity demand such as welding, while some changes in production volumes might be seen during periods of energy shortages.
Analysts note that welding represents a major electricity draw in automotive factories, and gas remains important for heating paint shops. Replacing pipeline gas with liquefied natural gas is not immediate, given the need for new infrastructure and logistics. In winter, car factories require substantial electricity and heat, with gas currently prioritized for electricity generation and, to a lesser extent, for paint production. These dynamics will shape production planning in the near term, subject to evolving energy markets and policy actions.