Photo: Audi
When we hear about the butterfly effect, we may get the impression that unconnected things can have implications for each other. The truth is that this chaos theory phenomenon actually shows how we often miss how connected everything is. A good example is the supply chain crisis the world is now facing. The next big thing missing may be unassuming: glass. According to The Wall Street Journal (WSJ), the automotive industry is concerned about it.
Volkswagen allegedly is stockpiling windows and windshields. Beverage companies would be buying bottle stocks to prevent a crisis. The explanation for the new concern is that glass needs a lot of energy in its making, more specifically natural gas. With Russia’s invasion of Ukraine, buying natural gas from the invader feeds its war machine and helps it kill even more innocents. In other words, it is not an option.
The problem is that the German industry heavily relies on Russian gas. Multiple car components are made in Germany or in Eastern Europe countries, which either need the same energy source or are too close to the war not to be affected by it one way or the other.
Any lack of glass will have an immediate effect on carmakers. Companies that replaced some chips with others to avoid missing deliveries in the past will not have that option with this essential material now. Either the car has windows and windshields, or it can’t be delivered. If there is not enough glass, the vast majority of passenger automobiles just can’t be manufactured.
According to the WSJ, not making glass provision is working with the idea of importing what they need from countries that are not facing an energy crisis. Depending on where these glasses are made, their cost may be much higher than that of parts made locally, which will also increase car prices.
Considering a lack of glass would be fundamentally attached to the energy crisis, it may be harder to solve than the issue with semiconductors. It depends on finding other natural gas sources other than Russia or different energy sources, such as nuclear energy. Germany already said it would not change its plans to shut down its last nuclear plants, so the perspective is that even more things that depend on energy may get more difficult to make and more expensive.
The problem is that the German industry heavily relies on Russian gas. Multiple car components are made in Germany or in Eastern Europe countries, which either need the same energy source or are too close to the war not to be affected by it one way or the other.
Any lack of glass will have an immediate effect on carmakers. Companies that replaced some chips with others to avoid missing deliveries in the past will not have that option with this essential material now. Either the car has windows and windshields, or it can’t be delivered. If there is not enough glass, the vast majority of passenger automobiles just can’t be manufactured.
According to the WSJ, not making glass provision is working with the idea of importing what they need from countries that are not facing an energy crisis. Depending on where these glasses are made, their cost may be much higher than that of parts made locally, which will also increase car prices.
Considering a lack of glass would be fundamentally attached to the energy crisis, it may be harder to solve than the issue with semiconductors. It depends on finding other natural gas sources other than Russia or different energy sources, such as nuclear energy. Germany already said it would not change its plans to shut down its last nuclear plants, so the perspective is that even more things that depend on energy may get more difficult to make and more expensive.
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