German car industry baulks at supplier demands over energy hikes

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Germany's giant carmakers may have secured their own energy supplies but thousands of small suppliers faced with a squeeze from soaring bills risk upsetting production through the winter.

have all said their own energy supplies are secured – but if their supplier network fails, their production lines could screech to a halt."If we can't build a car because of one missing part, that hits all of us," Geng Wu, head of group purchasing at Volkswagen said at a supplier conference in Wolfsburg this week.

The 112-year-old company, whose customers are mostly larger suppliers in the chain like Bosch , is busy calculating precisely how much electricity goes into each of its products to help in customer negotiations and establish what it could produce with less power, Hofmann said. "Our primary goal is to maintain production and avoid negative impacts on business operations," a spokesperson said.which would give a one-off payment worth one month's gas bill this year and implement a mechanism to limit prices from March.While contracts in the automotive supply chain in Germany often include clauses that adapt prices according to the cost of raw materials, energy clauses are much less common.

Soplast, a Portuguese autos supplier, said it was receiving higher than usual requests for quotes from German carmakers, who were increasingly interested in knowing their energy mix.

 

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