Among the industries most vulnerable to the effects of the war in Ukraine is the auto industry, which it is already struggling with Supply chain issues that have dragged on since the beginning of the pandemic. The impact is direct in terms of supplying components from the former Soviet republic, indirect in terms of aggravating the shortage semiconductor and increase in the raw materials from which cars are built. The division of the agency Standard & Poor’s dealing with the sector has reduced 5 million units According to its forecast for global production for the two-year period 2022-2023, around 81 million vehicles are expected to leave the assembly lines worldwide this year. The resumption of Covid infections recorded slowdowns in factories in China Shenzhen and Changchun where they produce Toyota, Volkswagen and Tesla contributes to the worsening of the crisis.
Stellantis, Melfi plant, shut down for 9 days due to lack of chips. Registrations down 17.5% in February
Wire harnesses are mainly produced in Ukraine, the country houses 17 factories dedicated to these productions, second only to Romania and Morocco. There are big names in the industry here, like the Japanese Fujikura and Yazakithe German Leoni or the French Nexan. In addition to safety issues for workers, forcing them to work only during the day and at “safe” times, a transport issue could soon arise, fewer and fewer truckers they are actually willing to travel such dangerous routes. Each car assembles an average of approx 5 kilometers of cable for electrical systems. According to analysts, the closure of Ukrainian plants could be the case Wells Fargolead to a reduction in the production of 700,000 cars with up to 15% of European four-wheeler production. Volkswagen and BMW Some factories have already had to close due to shortages of these components, and Mercedes expects that to happen soon. All manufacturers are trying to increase supplies from other countries, but the adjustment period will inevitably lead to a slowdown.
On the other hand, factories based in Russia are struggling with the consequences of sanctions and transport difficulties. The main producer in the country is the French group Renault which has temporarily closed its plant in Moscow, where the Captur and Arkana SUVs. Renault also controls Avtovaz, the first Russian automaker based in the city of Togliatti. There are also works by the Franco-Italian group south of Moscow Stellantis which he recently described as “manageable”, the impact on the production of the conflict. Faced with this complex situation, manufacturers are prioritizing the production of high-end cars that offer higher profit margins. In short, the shortage will be felt primarily on the Utilitarians therefore primarily at the expense of the economically weaker segments. Automakers’ shareholders are pushing to exit low-margin sub-funds altogether. Volkswagen has already announced this will not replace his Up when it reaches the end of its cycle, while Renault will cease production of Twingo. The consequences are also being felt in the used car market, as the prices of cheaper cars are rising sharply.
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Stellantis cuts shifts in Melfi and cuts workers’ wages ‘because of the war in Ukraine’
Nickel, whose price has literally gone insane in recent weeks, is used in both electric car batteries and steel production, with huge increases in cobalt and lithium as well. According to an analysis by IHS Markit, The average battery cost for electric cars has risen to $7,000 per vehicle in the wake of the Russian invasion of Ukraine. The country is a major exporter of neon gas, which is used to make semiconductors. Russia supplies about a third of the world’s palladium consumption, Mineral, which in turn is used to make chips. In retaliation for sanctions imposed by the United States and EU countries, Moscow has blocked the export of some.