BMW to stop production if Russia stops supplying gas

BMW to stop production if Russia stops supplying gas 1

In the case of termination of supplies of natural gas from Russia, production of BMW cars in Germany will stop. This is reported by Reuters, citing a member of the Board of Directors Milan Nedeljkovic, which is responsible for production in the company. Moreover, the absence of gas threatens to freeze the entire automotive sector, which accounts for more than 37 percent of the consumption of fossil fuels.

In this situation, BMW is looking hard for ways to reduce the dependence of production on gas, which last year was the main source of energy, accounting for 54 percent of the group’s energy consumption. In particular, the Bavarians are exploring new investments in solar, geothermal, and hydrogen energy: plants are to be equipped with solar panels and hydrogen is to be transported to the site in Leipzig, Germany.

“Hydrogen is very well suited to reduce or even completely offset the demand for gas,” Nedeljkovic said.

The plant in Debrecen, Hungary, is to become the world’s first automobile assembly plant that will do without fossil fuels. The main source of energy there will be the sun.

In addition, BMW is looking for ways to use geothermal energy. It is more stable than solar power, which depends on weather conditions, but the initial costs and complicated drilling processes have so far hampered its development. Nedeljkovic does not even rule out the use of nuclear energy: according to him, it “could be a stabilizing factor, especially in these turbulent times.

Since early spring, BMW, like other European carmakers, has been experiencing difficulties due to a halt in the supply of components from Ukraine. At the same time, car sales in Europe have fallen for the 10th consecutive month: 830,447 cars were registered in the EU and the UK in April – 20.2 percent less than in April 2021.