War In Ukraine Putting Even More Pressure On Car Manufacturing As Factories Crippled By Russia
While the global chip shortage has been tearing new car manufacturing a new one thanks to the pandemic, Russia’s invasion of Ukraine has now stirred things up even more as the exporting of wiring harnesses has been reduced massively from the country.
This has mostly disrupted the supply chains of European manufacturers such as Porsche and Volkswagen as companies like Leoni, Fujikura, and Nexans are struggling to fulfil demand. This has been so bad in fact that the aforementioned manufacturers have had to suspend production of some cars completely.
BMW has also been hit, but it told Reuters that it’s trying to fix these issues:
“Due to supply bottlenecks, interruptions to our production will occur.
“We are in intensive discussions with our suppliers.”
Companies around Ukraine such as Forschner, Kromberg & Schubert, Prettl, and SEBN have all been greatly affected by the attack from Russia, and while Leoni is doing its best to “compensate for production losses” after “interruptions in our two plants in Stryi and Kolomyja, triggered by the Russian war of aggression against Ukraine,” with the country responsible for almost 7% of automotive wiring harnesses in the European Union, this is going to be a battle many car manufacturers will feel the effects of.
A number of car companies have frozen any businesses they have in Russia with Volvo, Volkswagen, Ford, Honda, Toyota, and many others stopping exports of vehicles to the country completely. On top of this, VW, Stellantis, and Mercedes-Benz is donating money to help with war-torn Ukraine.