4 views left Get unlimited views with a free account

Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Explore Company Solutions.

Suppliers seek Energy Provisions in contracts with German Automakers

Industry: Vehicle Manufacturing
Current: Company Performance

Thousands of small suppliers who face pressure due to rising prices face the risk of disruption in production during the winter even though Germany's major manufacturers may have secured their energy sources
Although leading automakers Mercedes-Benz, Volkswagen, and BMW asserted that their energy sources are secure, their production lines could come to a standstill if their supply chain is disrupted
As energy costs continue to increase, suppliers are urging the sector to revise contracts to incorporate energy provisions

Small Suppliers Face Risk of Disruption in Production

Although large automakers in Germany may have ensured their energy supplies, thousands of small suppliers that are feeling the pressure of rising prices run the risk of disruption in production during the winter. As energy costs continue to increase, suppliers are urging the automobile sector to revise contracts to incorporate energy provisions.

Top automakers Mercedes-Benz, Volkswagen, and BMW claimed that their energy supplies are safe. However, their manufacturing lines could come to a halt if their supply chain goes down. The light vehicle production of BMW and Volkswagen increased significantly in 2022 in comparison to that in 2021, according to GlobalData.

BMW and VW, whose clients are mostly larger suppliers in the chain such as Bosch, are measuring exactly how much electricity goes into each of their products to aid in talks with customers and determine what they could create using less power.

Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Explore Company Solutions. Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Explore Company Solutions. Explore Company Solutions