Employee representatives expect production cuts if Russian gas deliveries fail to materialize.
(Photo: dpa)
Dusseldorf Employee representatives in the German automotive industry are concerned about the gas supply in Germany. At a press conference held by IG Metall Berlin-Brandenburg-Saxony on Monday, the union warned of an immediate embargo on Russian gas. “We are decidedly against it,” said district manager Birgit Dietze.
“If the gas deliveries from Russia stop all at once, then industry in Germany will gradually come to a standstill.” This cannot be compared with the temporary shutdown of industry and the service sector during the corona crisis. “A shutdown of machine builders, the chemical industry and steel manufacturers would also hit the German auto industry massively,” Dietze made clear.
Car manufacturers and suppliers have already put big question marks behind their outlook for the current financial year in view of the Ukraine war. The industry index published last week by the Munich-based Ifo Institute fell more sharply than ever before in March, from a plus of 14.4 to a minus of 43.1 points.
In addition to the problematic gas supply, increased raw material prices are also particularly burdening the production of the suppliers. For example, this caused a slump in earnings at the automotive supplier Hella in the third quarter of its shifted fiscal year.
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It is seldom that industry and employee representatives are so unanimous on an issue. Both have been painting horror scenarios for weeks, should Russian gas no longer arrive in Germany. Dietze, who also sits on the supervisory board of the gas turbine manufacturer MAN Energy Solutions, emphasizes that it won’t help if your own economy is weakened by an embargo.
China lockdown creates additional burden
The embargo is also not an option for Dirk Vogeler, works council member at Arcelor Mittal in Eisenhüttenstadt. “That would be catastrophic for us,” he warns. With a view to the war crimes that Russia is committing in Ukraine, employers and employees confine themselves to expressing their horror and condemning the crimes – there are no demands for sanctions.
Before the war, the car industry was still assuming a growing market. Due to catch-up effects after the corona crisis, the industry association VDA had expected a production increase of 13 percent in Germany. The VDA is now only assuming an increase of seven percent to 3.3 million vehicles.
Corona restrictions in China also play a role. Car manufacturers and suppliers had to stop production in many places. In the BMW plant in Leipzig you can feel the first effects, says works councilor Jens Köhler. “The plant in Leipzig is dependent on components that are manufactured in China. We are already noticing that the first deliveries from China are not coming,” he says. In the first quarter, deliveries at BMW have already fallen by more than six percent, and at Mercedes by as much as 15 percent.
More: “There is capacity”: How quickly Europe could replace Russian gas