How war in Ukraine is taking toll on Porsche, BMW production in Europe
Already battling an unprecedented and extremely challenging chip shortage, automotive manufacturers are now faced with a new challenge of shortage in other key components owing to the war in Ukraine. Reports suggest that brands like Porsche, BMW and Volkswagen have even had to suspend production cycles at some of the manufacturing facilities due to the prevailing situation.
According to a Reuters report, suppliers like Leoni, Fujikura, and Nexans have been either unable to provide wire harnesses to these major automotive brands which has led to supply-chain disruptions. "Due to supply bottlenecks, interruptions to our production will occur," BMW announced in a statement. "We are in intensive discussions with our suppliers."
Ukraine is home to some major automotive component-supplying companies in Germany like Kromberg & Schubert, Prettl, and SEBN, and Forschner. But production at facilities in western Ukraine has been difficult owing to advancing Russian forces here.
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Facilities here are also reportedly facing staff shortage with many employees either leaving for safer territories, joining the battle against Russian forces or moving to bunkers to stay safe from shelling.
In the light of such challenging conditions, automotive companies are now having to re-think strategy and look for alternate and more long-term solutions.
Automotive brands such as Volkswagen, Harley-Davidson, Volvo, Daimler and others have also had to suspend businesses in Russia with many opting to temporarily halt product supplies to the country. All of these brands have underlined that safety of staff - in Ukraine or in regions close by - remain priority.