Ukraine exports 7 percent of all wire harnesses for the European Union.
The automobile industry has yet to recover from the global chip shortage, and now it must deal with a new supply chain problem. As a result of Russia’s invasion of Ukraine, certain automakers are having trouble procuring wire harnesses. Several key suppliers have been impacted, causing some European automakers’ production to be disrupted.
Reuters reports that suppliers such as Leoni, Fujikura, and Nexans are having difficulty supplying wire harnesses, forcing Volkswagen and Porsche to halt production at several of their operations. BMW has also been impacted, and the manufacturer notified the online site that it is working with its distributors to resolve the issue as quickly as possible.
“Interruptions in our production will occur due to supply shortages,” BMW said in a statement, according to Reuters. “We’re having a lot of conversations with our vendors.”
Forschner, Kromberg & Schubert, Prettl, and SEBN are among the top German automotive supply businesses with industrial locations in Western Ukraine, which is currently being shut down by the Russian army. Leoni is aiming to “compensate for production losses” and “interruptions at our two factories in Stryi and Kolomyja, which have been prompted by Russia’s assault against Ukraine.”
According to AlixPartners’ examination of 2020 Comtrade statistics, Ukraine was responsible for around 7% of the wire harnesses shipped into the European Union. Plants in the cities of Stryi and Kolomyja create high-quality automobile components, not simply wiring harnesses, employing around 60,000 people. A total of 22 firms have spent over $600 million in 38 plants across the country.
The war in Ukraine already forced many automakers to freeze their businesses in Russia. Many, including Volvo, Volkswagen, Ford, Honda, Toyota, and others, have decided to halt exports of vehicles and motorcycles to the country. VW, Mercedes-Benz, and Stellantis will donate money to Ukraine assistance.