War in Ukraine hurts auto parts suppliers

The war has hit the Ukrainian auto parts industry, supplying multiple European OEMs.

A series of problems

Reduced production of cablesthe war has taken its toll on the Ukrainian auto parts industry, which supplies many European OEMs.

Following the collapse of the Soviet Union and the collapse of its car manufacturing industry, Ukraine has seen a surge in demand from OEMs since the 2000s. The country's proximity to the European Union, skilled employees and low labor costs have attracted a variety of manufacturers.
Employees produce electronic components, seats and, above all, cables.

According to the Comité de Liaison des Equipementiers Européens, Ukraine sold €760 million worth of cables to the European Union in 2021, for the automotive and aerospace industries.

Some fallback solutions

At the same time, some equipment manufacturers are replicating production in neighboring countries. A few days before the war, the Irish company Aptiv relocated its production of cables in Poland, Romania and Serbia.

Eastern European automotive companies hired large numbers of Ukrainians, many of whom would return to fight. Parts such as cars are also transported by various Ukrainian drivers and, as a result, multiple factories were closed after 1 month of war.

Ukraine is a major steel producer and the world's biggest shipper, used to produce electronic chips. If the industrial base has become accustomed to the addition of Crimea by Moscow, and stocks are high, this could support the problem in the medium term, more abundantly a rise in energy prices (gas, oil, electricity), which is the industry's main anxiety.

In conclusion, the war is clouding the hopes of the automotive market, already hampered by the epidemic, chip shortages, logistical problems and rising raw material costs, and it's not over yet...

Read other articles in news

You'll also find over 3,000 references of parts for licence-free cars on piecesanspermis.fr!

War in Ukraine hurts car parts suppliers
Piecesanspermis.fr