THE CONFLICT in Ukraine is severely affecting major car manufacturers who rely on vital parts made in the region.
Already struggling due to shortages of semiconductor chips, car manufacturers are now having to halt production due to the war in Ukraine. That’s because wire harnesses made in the West of the country are vital to fitting car computer systems, and that area is currently controlled by the Russians.
As fighting ceased production at Ukrainian car factories, the knock-on effect was almost immediate.
Cars cannot operate without wiring systems, which are often tailor-made to specific vehicles and manage miles of cables.
The wiring harnesses are among the first components to be installed in any new vehicle, and without them assembly lines are brought to a standstill.
Plants in the Ukrainian cities of Stryi and Kolomyja also produce other components for the car industry, employing around 60,000 people.
Around 22 companies have invested more than $600 million in 38 plants in the country.
Most of those plants are close to car factories of German automakers in other European countries.
The war in Ukraine already forced many automakers to freeze their business in Russia, however they didn’t sell a huge amount of cars in the country and believe it is heading toward an inevitable recession.
Many brands including Volvo, Volkswagen, Ford, Honda and Toyota have decided to stop exports of vehicles and motorcycles to the country.
VW, Mercedes-Benz, and Stellantis, who owns Vauxhall, will donate money to Ukraine assistance.
Some British BMW plants are currently closed and VW stopped production at its main plant in Wolfsburg as soon as
Russian troops crossed into Ukraine.
Mercedes-Benz said that it had moved shifts around at some of its locations but that all its factories were running.
Source: The Express.co.uk