Car manufacturers halt production due to war in Ukraine

Russia invaded neighbouring Ukraine on 24 February. The war also has an impact on European carmakers. Both BMW, Volkswagen and Porsche report having to temporarily halt production in Europe due to supply problems. In addition, a good number of manufacturers are halting production in and exports to Russia.

The Dutch company VDL Nedcar is one of the firms being affected by the war in Ukraine, reports De Limburger. The company is halting production at its factory in Born, Limburg, from Monday. This is due to disruptions in the supply of wiring harnesses, which are supplied via BMW. It is not known how long the production halt will last.

The impact of the war in Ukraine has forced BMW to temporarily halt production at its plants in Munich and Dingolfing, reports the Frankfurter Allgemeine Zeitung. Production in Leipzig and Regensburg is also continuing in a modified form. BMW is also halting production of MINIs at its Oxford plant in the UK, as well as engine production at its Steyr plant in Austria. In particular, the supply of parts such as wiring harnesses is causing problems.

Volkswagen has been forced to suspend production at its plants in Zwickau and Dresden. Production has been suspended in Zwickau, according to various media outlets, including Automobilwoche. Volkswagen manufactures the ID3, ID4 and ID5 at this plant.

The problems appear to be related to the supply of wiring harnesses. Top executive Herbert Diess reports on Twitter that Volkswagen has set up a special action group to assess the further impact of the war on production.

Like its parent company Volkswagen, Porsche has also reported that the supply of wiring harnesses has been disrupted by the war. These are manufactured in western Ukraine. A spokesperson told Automotive News that production at its factory in Leipzig is expected to remain suspended until the end of next week. Among other things, this means that production of the Macan and Panamera will be delayed. Porsche’s factory in Stuttgart-Zuffenhausen will, however, remain operational. The company produces the 911 and Taycan there.

The war not only affects vehicle production and supply in Europe, but also in Russia. Several carmakers interrupt their operations in Russia. Several are also completely halting exports to the country.

BMW is halting vehicle production across Russia. The company has had a factory in Kaliningrad for around twenty years. Last year, it produced some 12,000 vehicles there. The company is also halting vehicle exports to Russia.

The Volkswagen Group is also halting production and exports to Russia. This applies to vehicles from Volkswagen and its sister brands Audi, Porsche and Škoda. Volkswagen has factories in Russia in the Moscow area.

Toyota is also taking measures. The company is halting operations at a factory in St Petersburg. The company does not expect production and sales in the rest of Europe to be affected by the war.

Japan's Honda is halting vehicle exports to Russia, Reuters reports. The company has no car factories in Russia. Honda foresees logistical problems and problems collecting payments, among other things.

Mazda is also completely halting exports of its car models to Russia, reports Reuters. The company operates a factory in Vladivostok as part of a joint venture. Mazda is ceasing exports of parts to this factory.

Mitsubishi is also considering halting production in Russia in view of the sanctions imposed on the country. The company has 141 dealerships in Russia.

Britain's Jaguar Land Rover is interrupting the supply of its vehicles to Russia. The company sold 6,900 vehicles in Russia in 2021. The company points to trade challenges and says it is continuously monitoring the situation.

German carmaker Mercedes-Benz is halting car production in Russia. Exports are also being temporarily suspended. It is unclear how long these measures will remain in place. Mercedes-Benz has a factory near Moscow, which opened its doors in 2019.

Volvo Trucks is also halting vehicle production at its Russian plant. Volvo is also ceasing exports to Russia in view of imposed sanctions and deteriorating security in the country. The plant in question is specifically in Kaluga, some 150 kilometres from Moscow. The company is no longer accepting shipments here, which has brought the production line to a halt.

Volvo Cars additionally reports halting sales of its vehicles in view of sanctions imposed by the European Union (EU) and the United States (US), among others. The company calls it too risky to continue doing business in the country.