VW Group warns of supply chain disruptions due to Ukraine crisis

The VW Group has warned that thanks to the existing predicament in Ukraine, there may perhaps be disruptions in the provide chain. This can lead to adjustments in generation at individual VW Team areas, the organization mentioned in a assertion. VW Group Buying is also ‘engaged in an intensive trade with the pertinent suppliers and is examining alternatives’, the business reported.

VW Group’s Czech Republic based mostly Skoda brand name would seem significantly vulnerable. Skoda mentioned that it is experiencing vital source shortages of parts from quite a few community suppliers and ‘will limit creation of the Enyaq iV from this week on’.

Skoda also assembles cars and trucks from SKD package format in Ukraine – the Fantastic, Kodiaq, Karoq and Fabia Combi – doing work in partnership with Eurocar. Production of Skoda cars is presently suspended at the Solomonovo plant – exactly where all output is meant for clients in the Ukrainian marketplace only.

In phrases of product sales at threat, the Russian market place is one particular of Skoda’s most significant markets globally. In 2021, Russia was the 2nd-most significant current market all round. A full of 90,400 Skoda motor vehicles ended up sent there. Ukraine has also been a stable current market, with income of all-around 6,000 Skoda automobiles a 12 months. Considering the fact that 2002, somewhere around 190,000 Skodas have been made at the plant in Ukraine.

Skoda plants in Russia

In Russia, Skoda provides the Speedy, Octavia, Karoq and Kodiaq at two amenities. In Nizhny Novgorod, Skoda makes a few styles – the Octavia, Karoq and Kodiaq. The Speedy is produced at Skoda’s Kaluga plant. Skoda claims production at the Russian vegetation is nevertheless working, but adds that ‘the effects of possible disruptions to the source chains is getting continually analysed’.

‘Dismayed by assault on Ukraine’

Skoda also reported in a statement: ‘We are dismayed by the military attack on Ukraine and sincerely hope for the swift cessation of hostilities and a speedy return to diplomacy next global regulation.

‘We are extremely concerned for the people in Ukraine, specially the people of our a lot more than 600 Ukrainian colleagues in the Czech Republic and the total Eurocar team at the Solomonovo manufacturing facility in Ukraine and the headquarters in Kyiv. Our sympathy goes out to them all through these tough days. At the identical time, our ideas are with our colleagues at Volkswagen Team Rus whose condition is also severe.’