VW: Germany’s High Energy Costs Hurt Competitiveness

Volkswagen AG says Germany's rising domestic energy prices threaten the competitiveness of it's the country's domestic automakers, Bild am Sonntag reports.

VW Chairman Ferdinand Piech tells the German newspaper that the U.S. which is developing cheaper domestic sources of energy such as natural gas will have an energy-cost advantage over Europe until at least 2020.

Germany and many of its neighbors pay steep prices for energy from Norway and Russia. Piech adds that Germany's plans to phase out nuclear power by 2020 could add pressure by driving up electricity prices.

High energy prices at home have prompted VW to purchase more of its components from suppliers based outside Germany. Piech warns that Germany risks eventually losing some industrial sectors, such as foundries and metalworking.