The situation between Russia and Ukraine affects the global automotive supply chain

2022-04-12

Hildegard Wortmann, head of sales and marketing at Audi, said that the situation between Russia and Ukraine will have a huge impact on all the automotive supply chains, not just the automotive chip business, but the entire global automotive supply chain.

Although Russia and Ukraine account for a small share of global auto production, they provide key raw materials for chip production, which has been in short supply for more than a year as a result of the pandemic, and the outlook is not promising. Ukraine is also one of the main suppliers of harnesses and other raw materials, mainly to European carmakers, which are at great risk of exporting 45 per cent of the harnesses produced in Ukraine to Germany and Poland. European carmakers also source seat fabrics from Ukraine.


Alfons Dintner, chairman of Audi Hungary, said engine production shifts at The Gyor plant in Hungary were being adjusted due to supply chain problems. "The impact on the Hungarian plant will not be significant," he said.


Audi's head of sales and marketing, Hildegard Wortmann, declined to forecast audi's sales in 2022 because there are still many uncertainties.



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