German automotive supplier Continental AG has warned that the geopolitical uncertainties including the ongoing Russia–Ukraine conflict could result in lasting consequences for global production, supply chains and the demand for automobiles, the company said in a statement on 21 April 2022. Continental’s statement comes at a time when the China is witnessing a sharp rise in new COVID-19 cases, leading to strict implementation of lockdown measures that are disrupting the markets once again. ...

French carmaker Renault has halted the production of Megane e-Tech model at Douai plant in France due to the shortage of components, according to a report published by French publication called Automobile Propre on 13 April 2022. The report stated that the periods of partial unemployment are not completely behind us and that it is the shortage of semiconductors that is undermining the automotive industry. It added that the carmaker has decided to stop the production lines at the Douai site, d...

German automotive components manufacturer DRÄXLMAIER said production interruptions at several German OEMs due to the ongoing Russia-Ukraine conflict would affect DRÄXLMAIER’s operations, according to a press release published by the German supplier on 22 March. The affected supply of parts include electrical systems from Ukraine. DRÄXLMAIER supplies high-voltage battery systems for purely electric cars (EVs). Additionally, the supplier is currently expanding its technology center at its&...

US electric car company Rivian updated that the cascading impacts of the COVID-19 pandemic and the ongoing Russia–Ukraine conflict has affected its business operations ranging from facility construction to equipment installation and ensuring component supplies, the company said in its annual report for FY 2021 filed as Form 10-K with US SEC on 31 March 2022. The company said that the pandemic and the conflict in Ukraine have caused significant disruptions to its operations, including shorta...

German supplier of powertrain components ElringKlinger AG has suspended its guidance for fiscal year (FY) 2022 on account of a highly uncertain and volatile business environment as a result of the ongoing Russia–Ukraine conflict, the company said on 24 March 2022. The company said that its management board met and discussed the company’s outlook for the current financial year amid multiple challenging factors such as sharp rise in commodity, energy, and transportation costs. “Due to the...

The ongoing conflict in Ukraine has disrupted production at several supplier facilities, forcing them to announce production suspensions or shifts of production operations to other sites. Tier-1 suppliers such as Leoni, Gentherm, Aptiv, Kostal, Kroschu, Fujikura, Sumitomo Electric, Nexans, Yazaki, and Prettl have plants in Ukraine producing primarily wiring harnesses, of which Ukraine is a major regional hub for European OEMs. Several subsuppliers also operate in the country, supplying to B...

Chinese EV maker BYD Co. Ltd. plans to raise the price of its models in the range of USD471 to USD942 on the back of the rising cost of raw materials, according to a Reuters report filed on 16 March 2022. It further mentioned that the price increase would be implemented from Wednesday, adding that customers who have paid deposits on their vehicles earlier would not be affected. “Due to the impact of continued rise in the raw material prices, BYD has officially guided Wang Chao Business and ...

In an interview with The Financial Times on 10 March 2022, Volkswagen (VW) chief executive officer Herbert Diess has warned that a prolonged conflict between Russia and Ukraine would result in severe economic damage, worse than the COVID-19 pandemic, especially for the European countries. The VW boss also warned that the disruption of global supply chains could lead to huge price increases along with the scarcity of energy and inflation. In his interview with FT, Diess sai...

Futures and forwards exchange London Metal Exchange (LME) published a notice on 8 March that it was suspending trading in nickel following an unprecedented increase in nickel contracts causing short sellers struggling to pay margin calls. The price of nickel surged to over USD100,000 per metric ton on 8 March according to the LME, five times its value in January 2022. Significance: Nickel is one of the many commodities, including oil and aluminum, where price has risen sharply since t...

The ongoing conflict in Ukraine has disrupted production at several supplier facilities, forcing them to announce temporary production suspensions or shifts of production operations to other sites, opening another front for carmakers scrambling to stabilize their production output in light of the ongoing semiconductor shortages. Tier-1 suppliers, such as Leoni, Gentherm, Aptiv, Kostal, Kroschu, Fujikura, Sumitomo Electric, Nexans, Yazaki, and Prettl, have plants in Ukraine producing primarily wi...

Volvo Cars has suspended car shipments to Russia until further notice due to the ongoing geopolitical actions between Russia and Ukraine, according to a statement published by Reuters on 28 February. The Swedish automaker’s decision aligns with the potential risks associated with trade relations based on sanctions imposed against Russia, the statement added.    Significance: According to Reuters, Volvo becomes the first automaker to halt shipments as geopolitical tensions rise and...

The mounting tensions amidst a potential Russia-Ukraine conflict is increasingly bothering the global industry stakeholders who estimate that the struggle between the two countries could negatively impact the recovering supplies of semiconductors, several reports claim. According to a Reuters report filed on 11 February 2022, the White House has already warned the chip industry to diversify its supply chain as a cover against the possibility of Russia blocking access to key materials in return t...