NEWS: Ukraine conflict – Production delays
Manufacturers who source parts from Ukraine-based suppliers are experiencing production issues and many who sourced parts from Russian-based suppliers have severed ties with these partners.
Ukraine conflict – Production delays
Many major vehicle manufacturers have taken decisive action or been heavily impacted as a result of the Russian invasion of Ukraine.
Manufacturers who source parts from Ukraine-based suppliers are experiencing production issues and many who sourced parts from Russian-based suppliers have severed ties with these partners.
We’ve broken down some of the manufacturers affected and, where possible, steps being taken to resolve the issues. As this is an ongoing crisis further manufacturers/models may be affected.
BMW – BMW & Mini
BMW has stopped production of BMW and Mini vehicles in several factories around Europe because parts can’t be delivered from Ukraine.
"The conflict in Ukraine is having a far-reaching impact on production in the supplier industry there. The resulting production stoppages will lead to successive production adjustments and interruptions at several BMW plants," a spokesman told the Frankfurter Allgemeine Zeitung.
As per Automotive News Europe, production will be halted at Munich and Dingolfing in Germany as well as Oxford in the UK. Engine manufacturing will also stop at Steyr, Austria.
BMW will also stop exporting to Russia and stop production at its Kaliningrad facility, which built 12,000 vehicles in 2021.
"Due to the current geopolitical situation, we're discontinuing our local production in Russia and export to the Russian market," BMW said in a statement.
Ford
Ford has suspended its joint-venture operations in Russia.
“While we don’t have significant operations in Ukraine, we do have a strong contingent of Ukrainian nationals working for Ford around the world,” the firm said in a statement.
“As part of the global community, Ford is deeply concerned about the invasion of Ukraine and the resultant threats to peace and stability.
Honda
Honda will halt exports of cars and motorcycles to Russia from Wednesday 2 March. The Japanese firm doesn't have any factories in the country, but a spokesman told Reuters that challenges with shipping vehicles as well as making payments was the cause.
Back in 2020, Honda announced it would stop selling new cars in Russia by 2022. It sold just 1836 cars there in 2019 and 1406 in 2020.
Hyundai
Hyundai has stopped production at its St Petersburg plant in Russia for five days, citing a semiconductor shortage.
“The plant will be shut down temporarily, due to supply disruption caused by a semiconductor shortage,“ an official said.
The Korean firm went on to say that the decision had “nothing to do with Russia and Ukraine”.
Jaguar Land Rover
Jaguar Land Rover (JLR) has halted deliveries of Russia-bound vehicles.
The British firm has said its priority is "the wellbeing of our entire workforce and their families, as well as those within our extended network”.
"The current global context also presents us with trading challenges, so we're pausing the delivery of vehicles into the Russian market and continually monitoring the situation on behalf of our global customer base," it said in a statement.
The BBC has reported that sanctions imposed by the UK, EU and US are making it more difficult to sell cars in the country.
Mercedes-Benz
Mercedes-Benz has announced that it will donate €1 million (£833,690) to support those affected by the crisis in Ukraine.
Daimler Truck, Mercedes’s commercial vehicle division, has suspended its operations in Russia, where it holds a 10% stake in domestic HGV manufacturer Kamaz. The German firm said the parts it supplied to Kamaz were used exclusively for commercial vehicles, rather than military trucks.
Mitsubishi
Mitsubishi has said that it might suspend production and sales of vehicles to Russia, due to potential supply disruptions, according to Reuters. The Japanese company has 141 dealerships in the country.
Renault
Renault shares dropped by 6.4% on Monday as a result of Western sanctions placed on Russia. The French firm owns Russian manufacturer Avtovaz, which suspended assembly lines for a day at its Togliatti facility, due to parts shortages, earlier this week.
Renault has previously closed its factory in Moscow because of supply problems. The facility produces models including the Arkana and Captur crossovers for the local market.
Stellantis - Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Peugeot, Opel, Ram, and Vauxhall
Stellantis CEO Carlos Tavares has said that any decision on how the firm will alter its operations in Russia "depends very much on what the politicians are going to decide".
"We're expected to be a compliant corporation,” Tavares said. “We comply with the rules, laws and regulations in peacetime and we comply with sanctions in wartime."
"We have one in partnership with Mitsubishi in Kaluga, and as long as they have parts, they can operate; if there are no parts, they can't operate."
The Russian plant manufactures light commercial vehicles from Citroën, Opel and Peugeot, and Stellantis had been poised to begin exporting these to Western Europe.
Toyota
Toyota has lost 13,000 cars' worth of output following a cyber attack that targeted one of its suppliers of plastic and electrical components, Reuters has reported.
While Toyota hasn't directly blamed Russia for the attack, it occurred shortly after Japan announced that it would join Western allies in sanctioning the invading country, including by blocking Russian banks from accessing the Swift system.
"It's difficult to say whether this has anything to do with Russia before making thorough checks," said Japanese prime minister Fumio Kashida.
Volkswagen Group – VW, Cupra, Audi, Skoda, Seat, Porsche
Volkswagen has stopped taking orders in Germany for its plug-in hybrid models due to parts supply shortages, which have been exacerbated by the crisis unfolding in Ukraine. The Golf, Tiguan, Passat, Arteon and Touareg are all affected.
"Due to this demand and limitations in supply of semiconductors, we cannot take any further orders for plug-in hybrid electric vehicle models in Germany.”
Volkswagen Group has also ended all production and sales in Russia.
The Kaluga plant employs around 4000 people and builds the VW Polo, VW Tiguan and Skoda Rapid, under licence, as well as the Audi Q7 and Q8 from knockdown kits for the Russian market. It also builds petrol engines for several cars. The Nizhny Novgorod facility builds the VW Taos and the Skoda Kodiaq, Karoq and Octavia.
“Against the background of the Russian attack on Ukraine and the resulting consequences, the Group Board of Management has decided to discontinue the production of vehicles in Russia until further notice,” said Ralf Brandstätter in an online statement.
Volkswagen also halted production at two of its EV factories this week, with VW, Audi and Cupra all affected by the stoppage. Production at the firm’s Zwickau and Dresden factories will be on hold until Friday. Affected models include models built on the firm’s MEB platform, such as the ID model range and the Cupra Born.
The Volkswagen Group will donate €1m (£833,690) to refugee charity UNO-Flüchtlingshilfe as a result of the Russian invasion of Ukraine.
Porsche will stop production at its factory in Leipzig until the end of next week following Russia’s invasion of Ukraine. Production at the firm’s Zuffenhausen facility meanwhile will continue.
Skoda is also having to reduce production due to supply shortages caused by the invasion, which has prompted it to limit output of the Enyaq electric SUV.
"Due to the current situation in Ukraine, Skoda Auto is facing critical supply shortages of parts from several local suppliers that have an effect on some of our models,” the company said. "This is the reason why we will limit production of the Enyaq iV from this week on."
Skoda’s supply chain consists of several suppliers based in western Ukraine. It also has two factories in Russia which are still running. Further disruption is expected.
Volkswagen has paused deliveries of cars to local dealerships in Russia, due to supply chain issues exacerbated by Russia's invasion of Ukraine, the Russian RIA news agency has reported.
Production will be halted for “several days” this week at two factories in Volkswagen’s home country of Germany, because required parts haven't been made in Ukraine.
Volvo
Volvo became the first automotive brand to take action in the midst of Russia’s invasion of Ukraine, suspending car shipments to the country until further notice.
Volvo said it made the decision because of "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US,”.
The Swedish firm sold around 9000 cars in Russia in 2021, these coming to the country from factories in Sweden, China and the US.