Mercedes is accumulating vehicle components in anticipation of gas rationing restrictions

In the face of an escalating energy crisis, Mercedes-Benz AG, one of Germany's leading automotive manufacturers, is taking proactive measures to safeguard its operations. The company has established a 25-member energy crisis task force, working diligently to identify potential risks to its German-based suppliers in a gas rationing scenario and discuss production relocation to sites outside Germany.

As concerns about severe rationing have eased due to Germany's gas storage levels reaching over 90%, the industry still faces an increase in input costs due to significant energy price increases. To mitigate these costs, Mercedes is aiming to cut its gas consumption by 10% and potentially halve it in an emergency.

The company is also prepared to switch to other fossil fuels if gas supply becomes scarce. This preparation allows Mercedes to continue car production in Alabama and Beijing even if Germany's natural gas supply fails.

Mercedes is not alone in its preparations. German manufacturers are urgently preparing for possible gas rationing as the federal government will prioritize household and critical industry supply in a shortage situation. The halt in gas deliveries from Russia, a result of sanctions imposed due to the Ukraine war, remains a significant factor affecting gas supply in Europe.

To ensure continuous production of plastics, glass, and foundries in a gas rationing scenario, Mercedes is stockpiling parts that require gas for their production. The company's foundries in Untertürkheim are producing additional components used in axles and transmissions to boost inventory levels at plants in the USA and China.

In a critical situation, Mercedes would need to maintain about 10% of its usual gas demand to operate normally. The company is actively discussing production relocation with its suppliers to mitigate risks in a gas rationing scenario.

However, there are no publicly detailed reports specifying which German companies are preparing for potential gas rationing to maintain production with reduced gas supplies for several weeks. The Federal Network Agency considers Germany's gas supply stable and the risk of tight supply low, with a focus on cautious gas consumption.

Despite the challenges, Mercedes-Benz AG remains committed to navigating this energy crisis and ensuring the continuity of its operations. The company's proactive approach underscores its resilience and adaptability in the face of adversity.

Mercedes is accumulating vehicle components in anticipation of gas rationing restrictions