By Ben Klayman

(Reuters). – Several businesses, including the automakers Volkswagen in Germany (DE:) Renault (PA:), and Nokian Tyres tire manufacturer, Friday announced plans to close or transfer manufacturing facilities following Russia’s invasion in Ukraine.

Russian forces invaded Kyiv earlier in the week and pressed forward on Friday. Officials said that they had prepared for an attack to overthrow the government.

On Thursday, the United States placed severe restrictions on Russia’s exports. They restricted Russia’s access to international exports. The sanctions affected everything from electronics and computers for commercial use to aircraft parts and semiconductors. This could cause companies to change manufacturing plans and seek out alternative sources of supply.

J.D. Consulting was affected by the invasion. Power and LMC Automotive reduced their global 2022 new-car sales forecast by 400,000 units to 85.8 millions. A global shortage of semiconductors had caused a severe shortage in vehicles.

Jeff Schuster of LMC’s global vehicle forecasts said that a tight supply of vehicles will lead to increased prices and additional pressure due to the duration and severity of the conflict in Ukraine.

“Rising oil and aluminum prices will likely affect consumers’ willingness and ability to purchase vehicles, even if inventory improves,” he added. We have made substantial downgrades in our Ukraine and Russia forecasts because of the escalated conflict between them and the consequences associated with the sanctions against Russia.

Oil prices could rise to over $100/barrel, which will increase inflationary pressure on American and European consumers. Wells Fargo Colin Langan (NYSE:), analyst, stated in a research report. He stated that while consumers are willing to spend more for new cars than the sticker price, higher gasoline prices may impact long-term recovery.

Volkswagen, Germany said that production would be halted at two German factories for a few days due to delays in receiving parts from Ukraine.

France’s Renault stated that some of its operations at Russian auto assembly plants would be suspended next week as a result of logistic bottlenecks caused in part shortages. The company did not indicate whether it had suffered from the conflict but spokeswoman for Renault said that this was due to strengthened borders between Russia, Russia’s neighboring nations and parts being transported via truck.

According to Citibank, the carmaker ranks among Western businesses most exposed to Russia. It makes around 8% of its core earnings in Russia.

The company’s Russian division said that disruptions are caused mainly by tighter border control in transit countries, and the forced necessity to modify a number established logistic routes.” It did not name any countries.

Renault’s Russian carmaker Avtovaz said that some lines of a factory in Russia might be closed for one-day Monday because there is a global shortage. Avtovaz did not include the invasion in their statement.

Nokian Finnish Tires stated it is shifting some of its key products from Russia into Finland to be ready for additional sanctions after the invasion.

STOPPING DISTRUCTION

Aptiv (NYSE 🙂 Chief Executive Kevin Clark claimed that in the last few months, the American parts company had moved high-volume work out of Ukraine for lower-volume items “so that we were better-placed to manage disruption.”

Sumitomo Electric Industries (a Japanese auto supplier) said its Ukrainian factories had been closed and that they were talking with customers about possible substitutes.

Ford Motor (NYSE -) Co holds a 50% share in Ford Sollers. The joint venture has three Russia-based assembly plants, according to Ford. Ford stated that it is “deeply worried” by the current situation and will “manage any consequences” in real-time.

American automaker, General Motors USA Inc. also stated it will follow trade sanctions laws but refused to comment on whether Sollers plants were affected.

French auto parts manufacturer Valeo PA: The company’s direct impact is negligible, but the invasion may cause a drop in industry production and increase energy or material prices.

Nippon Steel Corp., Japan’s largest steelmaker, stated Friday that it will find alternatives to a raw material from Russia or Ukraine in case of disruptions.

Nippon Steel purchases 14% from these countries for its iron ore pellets. These are small balls of iron powder that are used in steel production. Officials stated that it has switched to Australia and Brazil for its iron ore pellets and this should have minimal impact.

Agricultural equipment maker Deere (NYSE:) & Co said on Friday it had closed its Ukraine office in recent weeks as a precautionary measure. The company employs around 40 workers in Ukraine.

Delta Air Lines Inc (NYSE : ), which doesn’t operate any services to Russia or Ukraine, announced Friday that it had stopped codesharing with Russian airline Aeroflot.