European industry buckles under weight of soaring energy prices

Volkswagen, Europe’s biggest carmaker, warned last week that it could reallocate production out of Germany and eastern Europe if energy prices don’t come down.

The chassis assembly line seen from the cabin of a Scania truck. Governments across Europe are taking emergency actions to shore up utilities and cushion the impact of the crisis.

Europe’s industrial giants have fretted for months that gas shortages this winter will cripple production. But even with fuel available, companies are discovering they can’t afford it.

“It’s not about shutdowns. It’s pricing, it’s cost,” said Christian Levin, chief executive officer of Traton, the truckmaking unit of Volkswagen.