Volkswagen stocked up on glass for a long winter
As the war in Ukraine continues, it increasingly affects many parts of the global supply chain. Oil and gas prices have skyrocketed, while the semiconductor market has barely recovered, has fallen into scarcity again. Now, war is threatening another piece of global manufacturing: Glass.
According to a new report in The Wall Street Journal, European glass manufacturers are in an extremely risky position. With a heavy reliance on natural gas, mostly supplied by Russiathey stood on a precarious precipice: reliant on thousands of businesses and consumers, but at the whim of the wartime Russian government.
Russia has cut off gas supplies to Germany, and further cuts are not out of the question. While glass production is said to be a priority for the European Commission, if gas supplies deplete further, it remains unclear how much natural gas will be left to go around – especially when used to power homes and hospitals.
Volkswagen ran in severe supply chain problems during chip shortages, so the company’s proactive approach may be the result of past experience. Stocking up on parts ahead of shortages isn’t cheap, but it can help the company weather any upcoming storms.
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