Mercedes looking at energy options should Russia turn off the gas

Mercedes-Benz (MBGn.DE) is looking at energy alternatives should Russia cut gas deliveries and is working closely with German authorities to ensure energy supplies, the premium carmaker’s top executive said on Friday.

“Every company is looking at options for diversifying energy sources,” Chief Executive Ola Kaellenius told Reuters TV ahead of the company’s annual general meeting.

“It is still too early to say exactly which scenario will happen, but of course, we are carefully looking at this.”

Russia’s Gazprom (GAZP.MM) cut off gas supplies to Poland and Bulgaria this week and has threatened to do the same to others, cranking up retaliation for Western sanctions imposed for Moscow’s invasion of Ukraine.

Germany has not been affected so far.

Mercedes Chief Financial Officer Harald Wilhelm said this week that the carmaker uses gas plants for heat to run paint shops.

A Reuters analysis shows that over half of the energy consumed by Germany’s carmakers was from fossil fuels, with the largest chunk from natural gas.