The Russian invasion of Ukraine is not only having a devastating impact on the local population but is also affecting global supply chains. Missing parts are bringing assembly lines in Germany, the UK and the Czech Republic to a standstill.
Volkswagen felt the effects of the conflict almost immediately when parts made in Ukraine could not be delivered. Just a few days after the outbreak of hostilities, VW announced that production at the MEB plant in Zwickau would be halted as of this Tuesday – initially until Friday. MEB production in Dresden will also be suspended from Wednesday to Friday. Among other things, the German carmaker needs electrical cable harnesses that have been produced by suppliers in Ukraine.
The employees will be put on short-time work for this period. How things will continue in the two German plants in Saxony is still being examined. So far, the situation has not eased up at all.
Elsewhere at Volkswagen, the Czech VW subsidiary Skoda also has to cut production because of a “critical shortage” of parts from Ukraine. The MEB SUV Enyaq is produced at the main plant in Mlada Boleslav and cannot be completed. At its usual full capacity, slightly more than 300 Enyaq and Enyaq Couapé are built there per day, while the Zwickau plant usually produces over 1,200 vehicles per day.
In western Ukraine, the contract manufacturer Eurocar also builds some combustion engine series, but production has since been discontinued. Skoda says it employs more than 600 Ukrainian workers in the Czech Republic. They are now to be supported, for example with accommodation and health care (also for their relatives) or with visa applications.
In Russia, Skoda is still able to keep production at its two plants running, but production is apparently impeded by Western sanctions for Russia’s invasion of Ukraine. Russia was also Skoda’s second-largest market in 2021, with over 90,000 car sales there. The Ukraine was also a big market for Skoda. The company revealed that “The sales strategy in Russia and Ukraine is currently the subject of intensive discussions. Sales in both Ukraine and Russia can be expected to fall in view of recent developments.” .
While Volkswagen’s production is already affected, other manufacturers still have enough parts for a few days – but not much longer. BMW’s subsidiary Mini has announced that it will close its main plant in Oxford, in the UK for the whole of next week. The electric Mini Cooper SE is also built there, but according to a report by the BBC, all models built in Oxford are affected – production will be stopped “for all shifts” from 7 to 11 March.
BMW / Mini has not said exactly which components are missing at Mini, saying only that it was in contact with suppliers and was monitoring the situation very closely.
In the meantime, Volkswagen has set up a task force has been set up to assess further possible consequences for the supply chain.
carscoops.com, reuters.com, bbc.com
Keyword: War in Ukraine halts electric car supply chains