Ferrari doesn't see Ukraine crisis impacting its supply chain

Italian luxury sports car manufacturer Ferrari doesn't see any impact on its supply chain as a consequence of Russia's invasion of Ukraine, claimed the automaker on Thursday. A spokesman for the company said that the company doesn't have direct suppliers in Russia and at the moment it is not anticipating an impact on its supply chain. Ferrari also said that Russia is a very small;l market for the company.

"We are monitoring the situation very closely... we will always ensure we comply with all rules, regulations and sanctions," the spokesman said to Reuters.

The sanction imposed by the US and European Union on Russia has prompted several automakers around the world to halt their entire operations in Russia. Volvo, Mercedes-Benz, Ford, Daimler Truck etc. have already suspended their exports to Russia in accordance with the sanctions.

Besides the halt in operations and suspension of exports to the country, the Ukraine crisis is also expected to impact the auto industry's supply chain adversely, especially in the European market. Both Russia and Ukraine are among the semiconductor suppliers for several automakers. Apart from that, Ukraine supplies wire harnesses to several automakers. Around 22 automotive companies have their investments in 38 plants in Ukraine, employing more than 60,000 workers. Operations in these plants are being impacted severely due to the conflict.

The auto industry has been reeling under pressure for more than two years, first due to the pandemic and then the Covid-induced supply chain crisis, especially the semiconductor shortage. In such a scenario, the conflict between Russia and Ukraine is expected to impact the auto industry's supply chain adversely, as the sanction will impact the shipping routes there as well, besides the manufacturing operations.

For example, Italian premium brakes manufacturer Brembo said on Thursday that its production has been hit by higher product costs and global chip shortage, while the crisis in Ukraine made it impossible to issue a forecast for the coming months.