Mercedes-Benz Group AG is making significant bets on wind projects to maintain the viability of its operations throughout the energy crisis in Europe. With the help of an energy provider, the luxury automobile manufacturer will begin using a sizable wind park in the Baltic Sea in 2027. This move follows an announcement by Mercedes in September 2022 that it would construct a wind farm at its Papenburg test facility in northern Germany. The Baltic Sea project complements the company's proposal for its own wind farm in Germany, and the two projects will meet 40% of its electricity needs in Germany. The amount of power generated through wind in Germany in 2022 increased significantly over that in the last five years, according to GlobalData.
As the supply chain is burdened by the increasing prices of energy, automakers in Europe could visualize a decline in output by more than one million vehicles each quarter beginning in the latter part of 2022 and continuing into 2023. From November 2022 through March 2023, automakers will likely be most affected by the shortage of parts and supply constraints, especially if energy is shut during the colder winter months.
Despite the possibility that Germany could impose severe fuel rationing in the coming months, Mercedes has been hoarding the parts it manufactures using natural gas to maintain production for several weeks. In response to the continent's backing for Ukraine, Russia has virtually blocked gas exports, forcing Europe's superpower economy to hunt for alternative sources and fill storage facilities before winter.
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