VW and Renault Shutter Operations As Russian Invasion Impacts Supply Chains
Volkswagen and Renault will suspend operations temporarily as Russia’s invasion of Ukraine impacts European supply chains.
Getty
Volkswagen and Renault will suspend operations temporarily as Russia’s invasion of Ukraine impacts European supply chains.
VW will halt production at its Zwickau and Dresden plants in eastern Germany for a few days in early March because of a shortage of electric cable sets made in Ukraine.
Renault will shutter operations at its Moscow assembly plant because bottlenecks at the Russian border have delayed parts deliveries, a spokeswoman said. Another plant, operated by Renault’s AvtoVaz venture in Togliatti will halt production over a shortage of semiconductors.
Russia’s invasion has caused a fresh set of challenges for companies still reeling from the pandemic. Automakers have been forced to curb production over the past two years because of an ongoing shortage of semiconductor chips.
German automotive companies and suppliers maintain 49 production sites in Russia and Ukraine.
Renault produces the Kaptur and Duster models at the Moscow site and makes Lada cars through its AvtoVaz venture. Russia is the French automaker’s second-largest market, accounting for 18% of sales by volume.
Originally posted on Auto Dealer Today
More Industry
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →