Downtime! Volkswagen, Mitsubishi, Renault announced one after another! Global auto supply chain “giant shock”

Russia and Ukraine together account for 70% of global neon gas production. Neon gas is an important raw material for chip manufacturing. The global semiconductor industry, especially the automobile manufacturing industry, has been worried about the “chip shortage” that will last for a period of time. Now, it is also worried about the danger of a shortage of neon supply caused by the situation in Russia and Ukraine.

The escalation of the situation in Russia and Ukraine and the triggered Western sanctions against Russia further aggravated the tension in the global supply chain and affected the automobile manufacturing industry. El German news agency reported on March 2 that supply chain problems caused by the conflict in Ukraine have affected the huge auto industry, and many automakers around the world have announced temporary shutdowns.

The escalation of the situation in Russia and Ukraine and the triggered Western sanctions against Russia further aggravated the tension in the global supply chain and affected the automobile manufacturing industry. The German news agency reported on March 2 that supply chain problems caused by the conflict in Ukraine have affected the huge auto industry, and many automakers around the world have announced temporary shutdowns.

A spokesman for Germany’s Volkswagen Group said that the Volkswagen Group’s Porsche plant in Leipzig, Germany, began to shut down on the afternoon of March 2 and is expected to continue at least until next weekend, with about 2,500 employees on standby. The day before, the Volkswagen Group announced that a major production site in Wolfsburg, Germany would have to be shut down due to the impact on the supply chain. In addition, Volkswagen’s production plant in Saxony, Germany, has encountered difficulties with cable shortages.

On March 1, a BMW Group spokesman revealed that due to supply delays, production at BMW’s plants in Germany and elsewhere in Europe will be affected. It is reported that the automotive wiring harness used by BMW is purchased from western Ukraine.

In addition to German car companies, Japan’s Mitsubishi Motors and France’s Renault have also announced that they may partially suspend car production and sales in Russia. Citing data from Citibank, Reuters reported that Renault is one of the Western automakers with the most contacts with Russia, with 8% of its core profits coming from Russia.

Russia and Ukraine together account for 70 percent of global neon gas production, according to Moody’s Analytics. Neon gas is an important raw material for chip manufacturing. The global semiconductor industry, especially the automobile manufacturing industry, has been worried about the “chip shortage” that will last for a period of time. Now, it is also worried about the danger of a shortage of neon supply caused by the situation in Russia and Ukraine.

The production of several important metals was also affected. Russia and Ukraine together account for 13% of the world’s titanium production and 30% of the world’s palladium production. Russia is also one of the world’s major nickel producers. These raw materials are required by the automotive industry. The Associated Press reported on March 2 that it is “impossible” for supply chains to catch up with global producer demand right now.

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