Stock Groups

Audi expects war in Ukraine to cause ‘tremendous interference’

[ad_1]

DETROIT – Audi expects the war in UkraineAn executive from the German luxury brand, Luxus Brand Germany said that the disruption would cause “tremendous interference” in the global supply chain.

Comments are being made by automakers around the world, such as Audi and its subsidiary Audi Group. VolkswagenAs a parent company, try to keep supply chains for critical parts like semiconductor chips or wire harnesses.

Automobile manufacturers have warned of the dangers. is creating extreme uncertaintyThe following year is about vehicle production, sales and financial predictions.

Hildegard Wortmann (head of sales and marketing for the car manufacturer) said Thursday that there would be “remarkable interference” with supply chains. The entire supply system will suffer tremendously from this.

Russia and Ukraine both account for a small amountThey are the largest supplier of raw materials to the manufacture of semiconductor chips. This is due in part to the disruptions caused the the coronavirus pandemic. The Ukraine is also a prominent supplier of wire harnesses, and other materials. This material is used mainly by European automobilemakers.

Wortmann added that Wortmann also said to wire harnesses,Those fabrics are also used in cars for electric power and communication among parts. The carmaker sources fabric from this country for its seats.

According to Reuters, Audi said Thursday that it would adjust production at a Hungarian plant because of supply chain problems. Mercedes-Benz is another automaker. and BMWThe war has prompted production reductions or adjustment of output.

Wortmann refused to give an estimate of how the war will affect the company’s sales by 2022 due to uncertainty.

S&P Global Mobility, formerly known as IHS Markit, on Wednesday downgradedDue to war, its global light vehicle production for 2022-2023 is expected to increase by 2.6 millions units, 81.6 million in 2022, and 88.5million units in 2023.

About 45% of Ukraine-built wiring harnesses are normally exported to Germany and Poland, placing German carmakers at high exposure, according to S&P.

[ad_2]