Ukraine exports 7 % of all wire harnesses to the European Union.
The global chip shortage has not yet helped the automotive industry and they now have to deal with another supply chain problem. Due to the Russian invasion of Ukraine, some automakers are having difficulty obtaining wire harnesses. Numerous major suppliers were affected and this has caused disruption in the production of some European-made vehicles.
According to Reuters supplier companies such as Nexans, Fujikura and Leoni are having difficulty supplying wire harnesses. This has forced Volkswagen to stop production at some of its plants. BMW was also affected, and the company informed the online publication that it is currently in discussions with its distributors to resolve the issue as soon as possible.
BMW stated in a statement that “Due to supply shortages, interruptions will occur,” Reuters quoted. “We are currently in intensive negotiations with our suppliers.”
Forschner, Kromberg & Schubert and Prettl are some of the biggest German automotive supply companies. They have production facilities for parts in Western Ukraine. The Russian army is closing down the sites. Leoni is trying to “compensate production losses and interruptions in our two plants at Stryi or Kolomyja that were triggered by the Russian war against Ukraine.”
AlixPartners has found that Ukraine was responsible for approximately 7 percent of wire harnesses being imported into the European Union. Stryi and Kolomyja have plants that produce high-quality components for automotive industry. This includes wiring harnesses. It also provides employment to around 60,000 people. In the country, 38 plants have been purchased by 22 companies worth more than $600million. Many of these plants are located near the factories of German carmakers in other European nations.
Many automakers in Russia have already been forced to close their Russian operations due to the conflict in Ukraine. Many automakers, including Volvo and Ford, Ford, Honda and Toyota, have decided not to export vehicles or motorcycles to Ukraine. Stellantis, Mercedes-Benz and VW will contribute money to Ukraine aid.