![Russia-Ukraine conflict cuts supply of raw materials to BMW, Mercedes, Porsche, VW 01]()
- Ukraine is an important supplier of automotive wire harness and neon gas
- Russian is needed for palladium and nickel
- Porsche, VW, BMW, Mercedes-Benz have announced cuts / stop in production
Ukraine may not appear to be a country that’s deeply involved in automotive manufacturing but the former Soviet state is one of Europe’s most important supplier of automotive-grade wire harness.
As you know, in today’s electronic-everything cars, a wire harness are just as important as semiconductor parts and a typical car today has up to of 5 km of wire harness snaking throughout the car. Yes, 5 km.
![Russia-Ukraine conflict cuts supply of raw materials to BMW, Mercedes, Porsche, VW 02]()
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Japan’s Yazaki – one of the largest wire harness manufacturer in the world, has a plant in Uzhgorod. It supplies to Jaguar Land Rover and BMW.
So is the Japan-German joint venture Sumitomo Electric Bordnetze (SEBN), which has a plant in Ternopil, Ukraine.
Germany's Forschner, Kromberg & Schubert, Prettl, are also exposed to Ukraine.
![Russia-Ukraine conflict cuts supply of raw materials to BMW, Mercedes, Porsche, VW 01]()
Another important raw material that Ukraine supplies to the world is neon gas, which is necessary for the production of automotive semiconductor parts.
Apart from wire harness and neon from Ukraine, European manufacturers also rely on Russia for palladium – an essential raw material for catalytic converters, as well as nickel, a very important material for EV battery manufacturing.
![Russia-Ukraine conflict cuts supply of raw materials to BMW, Mercedes, Porsche, VW 02]()
Porsche has since announced that it has paused production at its Leipzig plant that makes the Porsche Macan and Panamera; while BMW has also announced the same for its Munich and in Dingolfing plant in Germany, as well as MINI’s Oxford plant in the UK.
Volkswagen too will halting work at its Wolfsburg, Dresden and Zwickau plants in Germany starting next week, while Mercedes-Benz has said some of its European plants will be working in reduced shift hours.
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