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Because of attack on Ukraine: German car manufacturers are reorganizing supply chains

For attacking Ukraine
German automakers are reorganizing supply chains

Ukraine is essential for wire harness production. Because of the Russian invasion, the already crisis-ridden car manufacturers in Germany have to look for alternatives. In addition to deliveries from other countries, Ukrainian suppliers are to be supported in their search for safe locations.

Russia’s war of aggression in Ukraine is exacerbating supply bottlenecks for German automakers. “We expect sensitive effects on supply and logistics chains with repercussions on factories in Germany and Europe, but also elsewhere,” said the President of the Association of the Automotive Industry (VDA), Hildegard Müller, the “Automobilwoche”.

Deliveries from Russia and Ukraine failed to materialize. Ukraine is a center of wire harness manufacturing, which is now idle. The purchasing manager of the Audi group, Dirk Große-Loheide, told the trade journal: “This will give us headaches for many weeks to come.” The first replacement deliveries for urgently needed cable harnesses are now coming from Romania. “We’ve been in production for about ten days,” said Große-Loheide. According to information from “Automobilwoche”, Ford in Saarlouis is missing not only cable harnesses but also parts for the steering wheels of the Ford Focus, which would normally come from the Ukraine.

The car manufacturers are therefore helping their suppliers to relocate production to safe locations. The two automotive suppliers Aptiv and Leoni are to expand their capacities in other plants. “We’re trying to keep up production with our suppliers. We’re also considering doing this temporarily in other countries,” said Porsche boss Oliver Blume of the trade journal. According to the report, BMW and Mercedes-Benz also help unbureaucratically.

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