War in Ukraine: Which automakers are impacted?

Whether in Russia, through the consequences of the conflict, or even in Japan, the War in Ukraine also has repercussions on the automotive industry.

No one imagined that in 2022, a war could erupt in Europe. However, the Russian military assault on Ukraine began on February 24th, condemned by part of the international community. This military and humanitarian event is also economic for all European and global industries.

Renault and Mercedes at a Standstill, Volvo sanctions

The war now has a tangible impact on automotive manufacturers’ activities. The first affected are in Russia, with Renault owning a factory impacted on site. Owner of Avtovaz and the Lada brand, the French group has heavily invested in the country with three sites, manufacturing two models: the Kaptur (local Captur) and the Duster. This factory is now shut down, reports The Financial Times.

This should not directly affect the French market, since these cars have a second production site: Valladolid (Spain) for the Captur and Busan (South Korea) for the Arkana.

Mercedes-Benz also has a factory in Russia producing over 20,000 units annually. Opened since 2019, the Fort-Russ site near Moscow assembles the E-Class sedan, as well as the GLC, GLE, and GLS SUVs. While not officially closed, sister company Daimler Truck has suspended its operations in Russia via Twitter. This includes collaboration with the national manufacturer Kamaz, in which it owns 15% of the capital.

Finally, if the manufacturer does not have a local production site, Volvo announced the suspension of sales of its cars in Russia. This would amount to just under 10,000 vehicles per year. American group General Motors has done the same, although its imports number barely 3,000 units annually.

Volkswagen can no longer produce electric cars

Already struggling, Volkswagen announced the temporary closure of its Zwickau and Dresden factories in Germany, reports AutomotiveNews. These sites manufacture the group’s electric cars, including the Volkswagen ID.3, ID.4, ID.5, as well as models from other brands like Skoda Enyaq iV, Audi Q4 e-tron, or Cupra Born.

This is another blow for the German company, which was already affected by a component shortage that led to reducing the VW ID.3 lineup to only one version and engine.

Toyota hacked, a consequence of the Ukraine war?

Another consequence of the war in Ukraine, but unrelated to Europe’s supply chain. Toyota announced it would stop all operations in Japan this Tuesday, affecting 14 sites, following a cyberattack on one of its main plastic parts suppliers. Estimated daily production is around 13,000 vehicles, expected to restart on Wednesday.

The automaker might be a collateral victim, as Japan has condemned Russia’s actions and is financially supporting Ukraine. Prime Minister Fumio Kishida even stated that authorities would investigate this attack, CNBC reports. “It’s hard to say whether this is related to Russia before conducting investigations,” he clarified.

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