German automakers baulk at supplier energy demands

German carmakers may have secured their own energy sources, but thousands of tiny suppliers fear skyrocketing expenses that might disrupt winter production.

More providers want to rework contracts to incorporate energy provisions to offset growing prices.

BMW, Volkswagen, and Mercedes-Benz say their energy sources are safe, but a supply network failure may stop manufacturing.

Volkswagen's chief of group buying remarked at a supplier conference this week, "If we can't construct a vehicle because of one missing element, that impacts us all."

"We need assistance with energy expenses, raw material costs, and inflation clauses. Unless consumers participate, we'll terminate the contracts "Reuters' Christian Hofmann.

Hofmann said the 112-year-old firm is assessing how much energy goes into each product to assist in customer talks and determine what it might make with less power.

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