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BMW, Porsche suspend production due to shortages related to Ukraine – report


Russia’s invasion of Ukraine is having an impact on the auto supply chain.

Reuters Reports from BMW and Porsche were forced to halt production due to seat belt shortages.

BMW and the Volkswagen Group source their resources from suppliers in western Ukraine, and are among a number of car companies that have formed a “crisis team” to manage disruptions caused by the invasion. comb caused.

European Automotive News reports Porsche is shutting down production at the Leipzig, Germany factory, where they build Macan and Panamerauntil next weekend.

Production will continue at the Stuttgart-Zuffenhausen factory, where the building Taycan and 911.

A Porsche spokesman said: “The Volkswagen Group is looking at the situation in Ukraine with great concern and concern.

The German giant has warned that it may have to suspend production at its Wolfsburg plant in Germany, where production, along with other vehicles, Volkswagen Golf Course and Tiguan.

BMW is suspending production at its plants in Munich and Dingolfing in Germany, along with the engine plant in Steyr, Austria, and the Mini plant in Oxford, England.

The company’s factories in China, the US and Mexico are said to be unaffected because they use different suppliers.

BMW will also adjust production shifts at its Leipzig and Regensburg plants in Germany. It is stopping production at the Kaliningrad plant in Russia.

Some automakers source harnesses from suppliers such as Leoni, Fujikura and Nexans in Ukraine, due to their geographic location near the country’s factories, plus lower labor costs and workforce highly skilled workers.

Reuters According to the report, harnesses are the most important automotive component exported to the European Union from Ukraine, accounting for nearly 7% of total imports of this product.

Wiring sets are available for up to 5km of cable in a typical car and are specific to one vehicle model. It can take months for suppliers to increase production capacity at other locations.

German company Leoni has two harness factories in western Ukraine and although much of the conflict has occurred in the northern, eastern and southern regions of the country, it said “the situation is chaotic. at border points with the EU” is posing a challenge.

The imposition of sanctions on Russia has also forced auto companies to suspend their operations there, including Ford and General Motors, while Renault’s share price has fallen 37% since the 16th. /2.

Renault’s second largest market is Russia because it owns AvtoVaz, the company that makes cars under the Lada brand.





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