Lack of supplies and factories to stop their production .. How did the Ukraine crisis affect the auto industry?

The first repercussions of the war in Ukraine began on the auto industry sector to appear in Europe and Russia, where a number of companies in Europe announced temporarily suspending production for a deficiency in supplies, and the sanctions imposed on Moscow led to the stoppage of factories in Russia.

The Russian attack on Ukraine is aggravated by the problems facing manufacturers, which have already faced great bottlenecks in supply chains during the Corona pandemic, forcing it during the past year to curb production due to the lack of computer chips..

The impact of the crisis on the sector in Europe

BMW, the German auto giant, has announced the temporary stopping of production during the next week in many of its main factories, due to its inability to secure the required parts of the suppliers in Ukraine, and although all the company's factories are far from Ukraine, BMW"It depends on the components companies in West Ukraine to provide them with electrical wires.

These parts of the Cable Supply Company come to me, a German company that has two manufacturers in Ukraine, while Leoni confirmed that it is working to add production capacity in other sites to overcome production problems.

Volkswagen also confirmed that it will stop some production lines in the German city of Wolfsburg - where there is the largest car factory in the world - this week, and the closure will expand next week, due to the disruption of the supply of auto parts coming from Ukraine, including cables.

The impact of sanctions on the auto sector in Russia

Car production began to slow down in Russia, coinciding with the imposition of sanctions on it, as the first "Aftovaz" group for cars in Russia, which belongs to the French company Renault - announced last Thursday the suspension of work in its factories for four days, due to the lack of supplies in electronic components.

The Korean "Hyundai-Kia" group, the second sales in Russia, has also arrested its factory in the Russian city of St. Petersburg until next week, due to a lack of components..

Also this week, "Toyota", "Volkswagen", "BMW", "Mercedes", "Volvo", "Jaguar" and "Ford" announced the suspension of its work for manufacture and delivery in Russia until further notice, referring to logistical problems and to"The current geopolitical situation".