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The auto manufacturing industry has not fully recovered from the chip shortage and the new crown epidemic, and the situation in Russia and Ukraine has brought a severe setback to its European supply chain
.
Automotive wiring harness cable supplier Leoni, which has two plants in Ukraine, said it was stepping up to help offset disruptions to its Ukrainian production line by adding capacity at other production sites, while prioritizing the safety of its employees
.
In a statement, a spokesman for Laney said that Ukraine's logistics are currently quite challenging, especially the chaotic situation at some border points connected to the European Union
.
New energy vehicle charging cables produced by LEONI
.
(Photo courtesy of Lenny)
Ukraine is home to 22 foreign companies like LEONI, operating 38 factories that make components for the auto industry, including wiring harnesses, electronics, seats and other accessories, according to data released by the Ukraine Investment Agency
.
Volkswagen said last week it would halt production at its electric car plants in Zwickau and Dresden, Germany, and would suspend production at its Wolfsburg plant, the world's largest, from next week due to shortages of parts such as cable sets.
Part of the production line of an automobile factory)
.
BMW said it would suspend car exports to Russia and assembly at its factories in Russia
.
In 2021, BMW sold about 49,000 vehicles in Russia, accounting for 2% of its global vehicle sales
.
German car companies and suppliers have around 49 production sites in Russia and Ukraine, according to the German auto lobby group VDA
.
In addition, Ford, Volvo, GM, Jaguar Land Rover, Daimler Trucks and other brands will suspend deliveries to the Russian market
.
Russian automaker Avtovaz, controlled by French automaker Renault, has decided to suspend assembly lines at its Russian factory for a day due to shortages of chips and automotive electronic components
.
On Tuesday, Russia's largest automaker said it had resumed production at its Togliatti plant in central Russia
.
Renault has also previously closed its Moscow plant, which produces models including the Arkana and Captur, due to supply issues
.
Czech automaker Skoda will start limited production of the Enyaq iV this week
.
It is reported that Skoda's supply chain consists of several suppliers located in western Ukraine
.
In addition, Skoda has two other plants in Russia that are still operating, and further production shutdowns are expected in the future
.
"In light of recent developments, sales in Ukraine and Russia are both expected to decline
," Skoda said
.
Russia is Skoda's second-largest market for 2021, with around 90,000 new cars delivered in total
.
Hyundai Motor Russia's St.
Petersburg plant shut down for five days, citing a shortage of chips
.
"The St.
Petersburg plant will be temporarily closed due to supply disruptions due to chip shortages," Hyundai officials said
.
However, the decision to suspend production "has nothing to do with Russia and Ukraine.
" Meanwhile, local South Korean media reported that Hyundai had stopped supplying Russian dealers
.
Toyota suspended operations at all 17 factories in Japan a few days ago, losing production of 13,000 vehicles due to cyberattacks on suppliers of plastics and electrical components
.
While Toyota did not directly blame Russian hackers for the cyberattack, it came after the Japanese government announced it would join Western allies in sanctioning Russia, including blocking Russian banks from accessing Swift systems
.