THE war in Ukraine has caused many problems in car production as reported by Automotive News Europe: there are breaks in assembly plants and companies have suspended shipments to Russia, while there are many problems in the supply chain.
THE Hyundai it is not certain when Russian production will resume. It has not decided when it will start operating at its plant in St. Petersburg, Russia, citing ongoing problems with parts delivery.
THE Audi will reduce German production due to the crisis in Ukraine. Production of the A4 and A5 models at the Audi plant in Ingolstadt, Germany, is suspended from March 7 to 11. At Neckarsulm, production of the A6 and A7 models stopped from March 7 to 18. Further production cuts are likely to follow, Audi announced.
THE Mercedes-Benz is forced to reduce shifts at its European factories and production as supplies of spare parts produced in Ukraine are limited. The carmaker said it would adjust its shift planning to individual factories and aim to avoid full production shutdowns.
Exports VW, Porsche, Bentley in Russia stopped due to sanctions. The Volkswagen Group joined the exit of its companies from Russia, suspending exports and local production in the country in response to the invasion of Ukraine. The move affects two VW plants in Russia that produce Volkswagen and Skoda models, said car and luxury car maker Porsche, Lamborghini and Bentley, which is particularly popular with Russia’s elite.
THE VW warns of more production cuts as the crisis in Ukraine affects its suppliers. Volkswagen expects to temporarily shut down more plants, including its main plant in Wolfsburg, as the effects of shortages of key spare parts from suppliers in Ukraine increase.
Production in Europe is collapsing
Car production in Europe is collapsing as the flow of cables stops. Automotive industries such as Volkswagen, BMW and Porsche, are trying to obtain key wiring to build their cars, as suppliers in western Ukraine have closed due to the Russian invasion of the country. The shortage of cables has resulted in the cessation of production in car factories in Germany.
THE Volkswagen will stop production this week at two electric vehicle plants in Germany following Russia’s invasion of Ukraine that hit parts deliveries. The production of compact electric cars with battery VW, Audi and Cupra manufactured on the MEB platform of the VW Group will be affected.
THE Porsche suspends production of Macan, Panamera due to the conflict in Ukraine. Porsche suspends production at its Leipzig plant, which manufactures the Macan and Panamera, as the conflict in Ukraine disrupts its supply chain.
THE Nissan suspends vehicle exports to Russia and expects production stops. Nissan has suspended vehicle exports to Russia due to supply chain problems related to the conflict in Ukraine. The Japanese carmaker, which sold 53,000 vehicles in Russia last year, expects “further challenges” that will lead to a shutdown of local production.
Meanwhile, Russia’s largest carmaker, AvtoVAZ, will shut down its Togliatti and Izhevsk plants from March 9 to 11 as it faces shortages of electronics supplies.
What is happening in Germany
German carmakers warn of more impact on production from the crisis in Ukraine
The German Automobile Industry Association (VDA) has said that the consequences of Russia’s invasion of Ukraine are disrupting transport as well as economic transactions and that it is preparing for shortages of a number of raw materials. He said the impact of the conflict on shipping, rail and air transport was exacerbating supply chain problems at a time when stock levels were already low.
THE Toyota suspends production and imports of vehicles in Russia. Toyota will stop production at its Russian plant on Friday, while vehicle imports into the country have also been suspended indefinitely due to disruptions in the supply chain. Toyota is Russia’s leading Japanese brand, producing about 80,000 vehicles at its 2,000-strong St. Petersburg plant.
THE Honda suspended vehicle sales in Russia. Honda Motor Co. stops exporting cars and motorcycles to Russia and joins the growing list of global companies that choose not to operate in the country after the Russian invasion of Ukraine.
THE Ford suspended Russian operations after the invasion of Ukraine. Ford Motor, in response to the Russian invasion of Ukraine, said it had informed its Sollers joint venture partner that it was immediately suspending its operations in Russia until further notice.
Its shares Renault are overwhelmed by concerns about the car industry’s exposure to Russia. Shares of Renault, the European carmaker most exposed to Russia, have fallen to their lowest level since November 2020 as countries around the world escalate President Vladimir Putin’s sanctions for invading Ukraine.
The British car industry Jaguar Land Rover and Aston Martin cut off vehicle shipments to Russia as sanctions over the war in Ukraine created growing trade barriers for the car industry.
Impact working groups
Stellantis has set up two working groups to deal with the effects of the Russian invasion of Ukraine. One of the working groups has undertaken to monitor the sanctions imposed by the US and its Western allies on Russia and how the car industry will comply with them. The other monitors the staff of the automotive industry in Ukraine. Employees were safe from the last update.
Volvo, GM, VW, Daimler Truck have suspended shipments to Russia. Volvo has announced that it will suspend car shipments to the Russian market until further notice, while Volkswagen has temporarily suspended deliveries to local car dealerships already in Russia. Daimler Truck also said it would freeze its business in Russia with immediate effect, including its partnership with Russian truck maker Kamaz.
Automotive technology supplier Aptiv has transferred large volumes of production from Ukraine. Aptiv has been rolling out large-scale vehicle spare parts for vehicles outside Ukraine for the past two months before the hostilities, said Kevin Clark, chief executive officer.
Source: News Beast
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