As reported by Deutsche Presse-Agentur (DPA) on the 2nd, supply chain disruptions triggered by the Ukraine conflict have affected the massive automotive industry, prompting several global automakers to announce temporary production halts.
Volkswagen, BMW, Mitsubishi, Renault and other automakers have suspended some production.
A spokesperson for Germany's Volkswagen Group stated that the Porsche plant in Leipzig, Germany, under the Volkswagen Group, began shutting down on the afternoon of the 2nd, with the suspension expected to last at least until next weekend, leaving approximately 2,500 employees on standby. The previous day, Volkswagen Group announced that one of its major production bases in Wolfsburg, Germany, would have to halt production due to supply chain disruptions. Additionally, production at Volkswagen's factory in Saxony, Germany, has already faced difficulties due to a shortage of cables.
On the 1st, a BMW Group spokesperson revealed that due to supply delays, production at BMW's factories in Germany and other parts of Europe would be affected, and the timing and duration of the shutdowns are yet to be evaluated. It is reported that the automotive wire harnesses used by BMW are sourced from western Ukraine.
Beyond German automakers, Japan's Mitsubishi Motors and France's Renault have also announced the possibility of partially suspending car production and sales in Russia. Reuters, citing data from Citibank, reported that Renault is one of the Western automakers with the most extensive business ties to Russia, with 8% of its core profits coming from Russia.
Russia-Ukraine Neon Production Accounts for 70% of Global Output, Fears of "Chip Shortage" Intensify
According to data from Moody's Analytics, the combined neon gas production of Russia and Ukraine accounts for 70% of the global total. Neon is a crucial raw material in chip manufacturing. The global semiconductor industry, especially the automotive manufacturing sector, which has already been troubled by the prolonged "chip shortage", now faces the risk of neon supply shortages due to the Russia-Ukraine situation.
The production of various important metals has also been affected. Russia and Ukraine together account for 13% of global titanium production and 30% of palladium production. Russia is also one of the world's major nickel producers. These raw materials are all needed by the automotive industry. The Associated Press reported on the 2nd that currently, the supply chain "cannot possibly" keep up with the demand of global manufacturers.
