According to the Financial Times, European automakers are temporarily shutting down factories due to a shortage of components previously imported from Ukraine.
The newspaper article says: “BMW and Volkswagen have been forced to shut down factories across Europe after a Russian invasion forced the closure of Ukrainian electrical plants.” According to Auto Analysis statistics cited by the newspaper, Ukraine accounts for about 1/5 of all supplies of electrical cables necessary for operation.
“The problem with cables is that they are fundamental. You cannot start assembling even an incomplete car without them,” explained Alexander Marian, managing director of the consulting company Alix Partners. According to him, difficulties also arise in the fact that safety harnesses are made to order, which makes it difficult for them to be manufactured at other enterprises. In addition, they report big problems in the logistics departments of enterprises.
Volkswagen CEO Herbert Diess commented that the company is currently looking for alternatives and plans to change equipment. Reportedly, some Ukrainian suppliers have resumed work on the production of the necessary parts.
Previously, the Public News Service wrote about the warning of the head of Vol Volkswagen – he made a forecast about rising prices in Europe due to the Ukrainian crisis. According to him, the conflict in Ukraine could bring more problems to the European economy than the coronavirus pandemic.
Message Automakers BMW and Volkswagen suspended work due to lack of parts first appeared on Public News Service.