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PARIS: Ukraine’s car parts industry, which supplies many vehicle manufacturers in western European, has taken a battering since the Russian invasion one month ago.
Factories are at a standstill, cable production has slumped and there are concerns about neon supplies.
The country’s proximity to the European Union, its skilled workers and low labor costs have attracted a string of Western manufacturers, particularly from German groups like Bosch, Kostal and Prettl.
The factories produce electronic components, car seats and, crucially, electric cables. A maze of cables known as a wire harness runs through every vehicle and constitutes its central nervous system. A large SUV like the Porsche Panamera contains several kilometers (miles) of these cables.
A few days before the war started, Ireland’s Aptiv moved cable production to mirror sites in Poland, Romania and Serbia.
As a result, Volkswagen, BMW and Renault have all had to suspend production at certain factories.
Ukraine, a major steel producer, is also the world’s top exporter of neon, which is essential for manufacturing semiconductors. More widely, it is the rocketing prices of energy-gas, oil, and electricity-that worry the sector the most.
German giants Volkswagen, BMW and Mercedes-Benz have already trimmed production at some plants as they wait for car part deliveries, while exports to Russia have been halted over the war. EY auto analyst Peter Fuss said there was “no end in sight to the crisis” for the industry. “Production is at a standstill in some automotive plants, while manufacturers and suppliers are feverishly looking for short-term solutions,” he said. “We are currently seeing further price increases and even longer delivery times.”
https://www.kuwaittimes.com/ukraines-aut...aging-war/
Factories are at a standstill, cable production has slumped and there are concerns about neon supplies.
The country’s proximity to the European Union, its skilled workers and low labor costs have attracted a string of Western manufacturers, particularly from German groups like Bosch, Kostal and Prettl.
The factories produce electronic components, car seats and, crucially, electric cables. A maze of cables known as a wire harness runs through every vehicle and constitutes its central nervous system. A large SUV like the Porsche Panamera contains several kilometers (miles) of these cables.
A few days before the war started, Ireland’s Aptiv moved cable production to mirror sites in Poland, Romania and Serbia.
As a result, Volkswagen, BMW and Renault have all had to suspend production at certain factories.
Ukraine, a major steel producer, is also the world’s top exporter of neon, which is essential for manufacturing semiconductors. More widely, it is the rocketing prices of energy-gas, oil, and electricity-that worry the sector the most.
German giants Volkswagen, BMW and Mercedes-Benz have already trimmed production at some plants as they wait for car part deliveries, while exports to Russia have been halted over the war. EY auto analyst Peter Fuss said there was “no end in sight to the crisis” for the industry. “Production is at a standstill in some automotive plants, while manufacturers and suppliers are feverishly looking for short-term solutions,” he said. “We are currently seeing further price increases and even longer delivery times.”
https://www.kuwaittimes.com/ukraines-aut...aging-war/
