Lamborghini has stopped sales in Russia in response to Ukraine war
The 2022 war in Ukraine is wreaking havoc in the car industry (Getty)
Pump prices have hit a new all-time record over the Ukraine war
► How war in Ukraine affects the industry► A round-up of the latest news and impacts
► Analysis and what it means to motorists
Supercar brands Ferrari and Lamborghini have paused operations in Russia, as the car industry continues to react to the war in Ukraine. They’re the latest in a line of car manufacturers pulling out of Russia in response to the invasion.
War is having a wide-ranging impact on the automotive industry and is piling pressure on a sector already under duress from the past few years of Brexit, the pandemic, chip shortage and political pressures to electrify.
In this round-up, we look at the effect of the Ukraine crisis on the industry and on everyday motorists.
Car manufacturers’ response to war in Ukraine
The Russian car market has been isolated from the rest of the world, after shipping giants MSC and Maersk suspended container shipping to and from the region. This has effectively closed down imports and exports there. In addition, manufacturers have made a variety of responses to the invasion of Ukraine.
Aston Martin On 1 March, Aston Martin announced it was stopping sales in Russia. Sales there and Ukraine account for less than 1% of its global sales.
Audi Production of A4, A5, A6 and A7 models are being suspended in in mid-March at factories in Ingolstadt and Neckarsulm. Electric Audis based on the MEB platform are also affected.
BMW The Munich premium brand is pausing production at certain German and UK factories as it addresses supply chain issues.
Ferrari Maranello said on 8 March: ‘Given the ongoing situation Ferrari has taken the decision to suspend the production of vehicles for the Russian market until further notice.’ Ferrari is donating €1 million to support Ukrainians displaced by the crisis.
Ford The Blue Oval has suspended operations with joint venture partner Sollers until further notice.
Hyundai The Korean car maker said production at its plant in St Petersburg was being affected by supply issues.
Jaguar Land Rover JLR has paused operations in Russia, it announced on 1 March. ‘The current global context presents us with trading challenges so we are pausing the delivery of vehicles into the Russian market and continually monitoring the situation on behalf of our global customer base.’
Lamborghini On 8 March, Sant’Agata confirmed it was suspending operations in Russia. ‘In light of the current situation, business with Russia has been put on hold.’
Mercedes-Benz Daimler has said it expects to reduce production but is aiming to avoid bringing any lines to a halt.
Nissan Japanese car maker has paused car exports to Russia.
Porsche Production of the popular Macan and Panamera plant in Leipzig have been restricted during the supply chaos.
Renault The French car maker is deemed the most exposed to the Russian market, with its Avtovaz venture and Moscow factories. Production has been disrupted and shares in Renault have plunged by nearly 40% since mid-February. Russia is the company’s second biggest market.
Toyota The company – Russia’s top-selling Japanese car maker – has confirmed it is stopping production in Russia.
Volkswagen VW has reduced production of key models in Wolfsburg as supply chains are disrupted. Wire harnesses are made in Ukraine and the shortages have affected Audi, BMW, Mercedes and Porsche production in Germany too. Supplies are also affecting production of MEB electric cars.
Volvo The Swedish car maker is suspending shipments to the Russian market for the foreseeable future.
Petrol prices soar to record high
Pressures in the global energy network have pushed the price of oil to $139 a barrel, a 14-year high. Net result? Higher prices at the pump for motorists, who have seen unleaded and diesel surge past £1.50 a litre – and many analysts fear prices will spiral further as the West close off oil supplies from Russia.
Analysts predict that soaring fuel prices will further accelerate sales of electric cars… although the supply chain problems outlined above mean that waiting times for EVs are becoming even longer. It’s a devilishly difficult problem.
Car costs are rising too…
The crisis in Ukraine is also threatening to push up the price of cars, as raw materials become scarcer and more expensive. The price of metals has jumped on the invasion: aluminium and palladium for catalytic converters are pricier, while Stellantis CEO Carlos Tavares has called for a cut in steel tariffs to prevent hyper-inflation in the supply chain.
We’ll update this round-up with significant news of the impacts of the Russian invasion of Ukraine on the car industry. Stay tuned.
Keyword: Lamborghini and Ferrari join exodus from Russian car market