The Automotive Tyre Manufacturers' Association (ATMA) has expressed concerns over the acute shortage of domestic natural rubber supply in India, warning that this could potentially disrupt tire production if not addressed promptly. Despite high natural rubber prices, the availability has significantly decreased, with ATMA suspecting that certain sections of the natural rubber production and trade might be withholding stock in anticipation of further price increases. ATMA Director General Raji...

French tire company Michelin announced via a press release on 28 June that it had decided to transfer its activities in Russia to local management by the end of 2022 in response to technical difficulties in resuming production. According to the press release, supply issues and issues related to general uncertainty have driven the company’s decision to transfer control of its administrative, sales, and industrial operations to the current local management that would operate the Russian site ...

According to a report published by Reuters on 2 June 2022, Russia’s trade ministry has prohibited shipments of noble gases such as neon, a critical element in chip manufacturing, until the end of 2022 to enhance its market position. Russia's export restrictions may intensify the global semiconductor market's supply shortage. Ukraine was one of the world's leading exporters of noble gases until March, when it halted production at its factories in Mariupol and Odesa. The Russian government...

German automotive giant ŠKODA AUTO has moved certain wire harness production from Ukraine to the Czechia in close coordination with the affected suppliers, according to an official press release on 1 June 2022. In close collaboration with the impacted suppliers, ŠKODA AUTO has moved certain wire harness production from Ukraine to the Czechia. In addition, the carmaker is acquiring more production capacity in Morocco and Romania. The steps are intended to protect the organization e...

German automotive giant Volkswagen’s executives said that supply chain issues worsened by the Russia-Ukraine conflict are improving, but they are still dealing with a massive backlog of orders at the World Economic Forum in Davos, according to a report published by The Washington Post on 25 May 2022. Audi board member Hildegard Wortmann claims that the VW-owned company is seeing its "highest level of orders at the present," but buyers will have to wait a year or more for deliveries. Chairma...

According to a report published by PanDaily He Xiaopeng on 26 May 2022, the founder and chairman of Chinese carmaker XPENG Motors, said on social media regarding the gradual recovery of automotive supply chains in the midst of the persistent worldwide shortage of computer chips. He Xiaopeng stated that the company has estimated that a smart car's total number of chips surpassed 5,000, with hundreds of various types of chips. However, he pointed out that many of the chips affected by the ...

On 24 February 2022, Russian forces initiated military operations in neighboring Ukraine, provoking a massive international geopolitical response aimed at financially isolating the country’s economy from the rest of the world. Western governments have since initiated wide-ranging sanctions that have cut off the country’s supply chains while simultaneously causing a large-scale exodus of international businesses from the country. While negotiations calling for a diplomatic solution to the cri...

The ongoing Russia-Ukraine conflict is affecting the supply of various raw materials and resources, including helium gas (which goes in automotive airbags and semiconductors). However, according to IHS Markit’s market research, the extent of the impact on helium will be minimal in the short run. In fact, the impact of COVID-19 has been significant on the global helium supply chain.  Helium and helium mixtures are essential for the functionality of most airbags. Most airbags harness a h...

ŠKODA has announced via press release on 26 April that the automaker resumed production of its all-electric sport utility vehicle (SUV) ENYAQ iV at the Mladá Boleslav plant. The Czech carmaker had previously halted production citing supply chain bottlenecks for cable harnesses from Ukraine. According to press release, around 1,000 ENYAQ iVs per week can be produced currently with the supply of essential components and ŠKODA plans to gradually increase capacity over a two-month period. In t...

German automotive supplier Continental AG has warned that the geopolitical uncertainties including the ongoing Russia–Ukraine conflict could result in lasting consequences for global production, supply chains and the demand for automobiles, the company said in a statement on 21 April 2022. Continental’s statement comes at a time when the China is witnessing a sharp rise in new COVID-19 cases, leading to strict implementation of lockdown measures that are disrupting the markets once again. ...

Germany-based global supplier of adhesive technologies Henkel AG announced on 19 April 2022 that the company plans to exit its business activities in Russia as a result of Russia’s invasion in Ukraine. “Against the background of the current developments of the war in Ukraine, Henkel has decided to exit its business activities in Russia,” the company said in a formal statement Tuesday. The company further notified that while the execution process is being prepared as it continues to w...

Continental has resumed production of passenger car tires at its Kaluga plant in Russia to protect local workers who could otherwise face criminal charges, Frankfurter Allgemeine Zeitung reported on 19 March. Employees and managers in Russia face severe criminal consequences should they refrain from serving local demand. The company employs around 1,300 people at the Kaluga site and resuming tire production at the Russian plant is not a profit driven decision, report added. Significance: L...

French carmaker Renault has halted the production of Megane e-Tech model at Douai plant in France due to the shortage of components, according to a report published by French publication called Automobile Propre on 13 April 2022. The report stated that the periods of partial unemployment are not completely behind us and that it is the shortage of semiconductors that is undermining the automotive industry. It added that the carmaker has decided to stop the production lines at the Douai site, d...

Finnish tire manufacturer Nokian Tyres released a press statement on 11 April discussing new impacts to its tire business after the European Union, on 8 April, imposed a fifth package of economic and individual sanctions against Russia in view of its aggression against Ukraine. According to Nokian’s press release, the new sanctions that affect its business are: Sanctions prohibiting the import, purchase, and transfer of tires from Russia to Europe. Sanctions prohibiting European com...

Japanese automaker Mitsubishi Motors has said that it has stopped production at its Kaluga plant that it co-runs with Stellantis in Russia until further notice, according to a report published by Reuters on 7 April 2022. The reason behind the suspension of production has been cited to be the logistical snags, vehicle exports and also the parts supply to Russia have been suspended since March. Significance: Several businesses, particularly the automobile industry, have been disrupted as a r...

The United States-based chipmaker Intel has suspended its operations in Russia following the country’s conflict with Ukraine, according to a report published by Reuters on 6 April 2022. The company said it has implemented business continuity measures to avoid global operations disruptions after suspending shipments to Russia and Belarus last month. Significance: Similarly, International Business Machines (IBM) has also suspended shipments to Russia and Qualcomm has stopped selling its pr...

Russian military forces initiated military operations in Ukraine on 24 February, creating logistical nightmares for automotive supply chains whose downstream ramifications are yet to reach the consumer market. Western governments, following the invasion, initiated broad-based financial and trade-based sanctions against Russia. Occupation of critical parts of Ukraine’s shoreline by Russian forces indicate that even if a ceasefire is announced between the two countries in the next couple of week...

German automotive components manufacturer DRÄXLMAIER said production interruptions at several German OEMs due to the ongoing Russia-Ukraine conflict would affect DRÄXLMAIER’s operations, according to a press release published by the German supplier on 22 March. The affected supply of parts include electrical systems from Ukraine. DRÄXLMAIER supplies high-voltage battery systems for purely electric cars (EVs). Additionally, the supplier is currently expanding its technology center at its&...

US electric car company Rivian updated that the cascading impacts of the COVID-19 pandemic and the ongoing Russia–Ukraine conflict has affected its business operations ranging from facility construction to equipment installation and ensuring component supplies, the company said in its annual report for FY 2021 filed as Form 10-K with US SEC on 31 March 2022. The company said that the pandemic and the conflict in Ukraine have caused significant disruptions to its operations, including shorta...

Finnish tire manufacturer Nokian Tyres announced via press release on 30 March that it had started to expedite its plans to invest in new production capacity in Europe in response to the ongoing conflict in the Ukraine region. According to the press release, the decision to expedite plans was driven by the high uncertainty the company was facing with regards to its operational environment and manufacturing capacity. The company further stated that because of the expedited capacity expansio...

German supplier of powertrain components ElringKlinger AG has suspended its guidance for fiscal year (FY) 2022 on account of a highly uncertain and volatile business environment as a result of the ongoing Russia–Ukraine conflict, the company said on 24 March 2022. The company said that its management board met and discussed the company’s outlook for the current financial year amid multiple challenging factors such as sharp rise in commodity, energy, and transportation costs. “Due to the...

German automaker Volkswagen has delayed its ID.5 electric car launch by a month to the first week of May due to a disruption in the supply of wire harnesses from Ukraine, according to a report published by Automobilwoche on 28 March 2022. Volkswagen was not able to manufacture enough exhibition and demonstration vehicles for its sales partners. In order to ensure that all partners are treated equally, the vehicles that are already in the destination stations are not yet being delivered. The e...

The ongoing conflict in Ukraine has disrupted production at several supplier facilities, forcing them to announce production suspensions or shifts of production operations to other sites. Tier-1 suppliers such as Leoni, Gentherm, Aptiv, Kostal, Kroschu, Fujikura, Sumitomo Electric, Nexans, Yazaki, and Prettl have plants in Ukraine producing primarily wiring harnesses, of which Ukraine is a major regional hub for European OEMs. Several subsuppliers also operate in the country, supplying to B...

Italian tire manufacturer Pirelli announced via its 2021 financial results statement on 17 March its business operational response to the ongoing conflict in Ukraine. According to the report, the tire company has halted all investments in the Russian local market (excluding those linked to security) as a response to actions taken by Russian forces in Ukraine. The company also stated that will be progressively limiting activities at its factories in Russia to levels needed to ensure the f...

French carmaker Renault Group said on 23 March 2022 that its Board of Directors met on 23 March and have approved suspension of all activities in its manufacturing plant in Moscow with immediate effect. The decision comes after Ukrainian president Volodymyr Zelenskyy called out Renault during his 20-minute speech to the French parliament earlier in the week. Renault Group also said that the company management is assessing its stake in Russia’s largest carmaker Avtovaz in the wake of current...

The conflict in Ukraine is disrupting not only the supply chain for critical components and materials, it is also causing consequences to the software companies serving the automotive sector. Indeed, multiple automotive software companies have branches and software developers in Ukraine, and this poses an obvious immediate threat to the execution and delivery of software development projects. This insight presents the findings and feedback received during the research.S&P Global Mobil...

News agency Reuters reported on 21 March that the aluminum prices rose on Monday after the Australian government announced its decision to ban exports of alumina and aluminum ores to Russia in response to its continuing military operations in Ukraine. According to the article, the 3-month price of aluminum on the London Metal Exchange (LME) rose 3.7% to USD3,507 a ton after the announcement. Significance: According to Reuters, the export ban by Australia is designed to limit Russia’s cap...

Finnish tire manufacturer Nokian Tyres announced via press release on 22 March an update to its operational strategy response to the ongoing crisis in the Ukraine region. According to the press release, the company is currently carrying out the following actions: The company will continue to operate the passenger car tire factory in Vsevolozhsk, Russia, to make sure that the factory is operated and controlled by Nokian Tyres also in the future. The company will no longer invest in&nbs...

The United States based Ford Motor Company’s vehicle production has been disrupted by the global semiconductor shortage and the ongoing Russia-Ukraine crisis, according to a report published by Reuters on 21 March 2022. The US carmaker said that it will shut its German operations in Saarlouis and Cologne plants, owing mostly to a global chip shortage. As a result, it has ceased accepting new orders for the S-Max and Galaxy automobiles manufactured in Valencia, Spain. A Volkswagen plant in P...

Japanese supplier Sumitomo Electric will transfer production of wire harness from Ukraine to plants in Romania and Morocco due to the ongoing war in Ukraine, Nikkei Asia reported on 22 March. Sumitomo had suspended operations at its factory in western Ukraine at the end of last month, The transfer of production could cost the supplier around USD84 million, but its major customer Volkswagen may cover part of the expense, said the report. Significance: Ukraine is home to major supplie...

Japanese global glass manufacturing company AGC Group announced via press release on 18 March that it had decided to scale down production and shipments of automotive glass production to automobile manufacturers in Russia in response to the ongoing crisis in the Ukraine region.   According to the press release, the company is continuing to monitor the situation closely and will take appropriate actions according to the circumstances. Significance: The glass manufacturing company ...

Japanese tire manufacturer Yokohama Tyres is halting production at its passenger tire plant in Kazinka Village, Gryazy District, Lipetsk region, Russia, run by its subsidiary, L.L.C. Yokohama R.P.Z., according to a statement provided by the company to Tire Business on 18 March. According to the statement, Yokohama stated it was sincerely hoping that the situation in Russia and Ukraine would be resolved as soon as possible, and that peace and the safety of all people will be secured. Signif...

US chemicals company DuPont announced via press release on 15 March that it had decided to suspend its business operations in Russia and Belarus in response to the ongoing crisis in Ukraine. The company stated that it hoped that a peaceful resolution to the conflict would be achieved quickly. Significance: The company currently operates in 40 countries. The company currently runs an Innovation Center in Moscow, Russia, that focuses on science-powered innovation for the automotive indu...

American global specialty chemicals and performance materials company Cabot Corporation announced via press release on 15 March that it will be increasing prices globally for the Carbon Black products sold by its Specialty Carbons business. According to the company, the increase in prices is necessitated by the significant and rapid rise in prime raw material costs, including that of oil and natural gas. The company stated that the increases, effective for all shipments on or after 15 Apri...

Chinese automaker Geely has suspended production at its Belarusian plant and is aiming to resume operations on 1 April due to a shortage in parts supply that are affected by the ongoing regional emergency, according to RusAutoNews on 16 March. The automaker’s decision aligns with potential risks associated with trade relations and ongoing Ukraine and Russia crisis, the statement added.   Significance: Several OEMs have halted shipments as geopolitical tensions rise and disrup...

Stellantis will slow operations at its key Melfi plant in Italy next month due to worsening microchip supply conditions triggered by the conflict between Russia and Ukraine, Reuters reported on 15 March citing a statement from metalworker unions. "The company has made it clear that in recent weeks, the dramatic situation of the war between Russia and Ukraine, with those territories as leading producers of raw material to produce microchips, makes any kind of production planning harder and harder...

Chinese EV maker BYD Co. Ltd. plans to raise the price of its models in the range of USD471 to USD942 on the back of the rising cost of raw materials, according to a Reuters report filed on 16 March 2022. It further mentioned that the price increase would be implemented from Wednesday, adding that customers who have paid deposits on their vehicles earlier would not be affected. “Due to the impact of continued rise in the raw material prices, BYD has officially guided Wang Chao Business and ...

Volkswagen could feel the impact on its business outlook for 2022 due to a shortage of wiring harness caused by the ongoing conflict between Russia and Ukraine, Reuters reported on 15 March, citing executive officers of the automaker. The carmaker is relocating production from Ukraine to North Africa and Eastern Europe. Rising raw material costs could increase prices for electric and internal combustion engine vehicles, with multiple components including batteries and catalytic converters set...

French tire manufacturer Michelin announced via press release on 15 March that it would be suspending its industrial activity in Russia as well as exportations to Russia from other countries. According to the press release, the company’s Davydovo plant in Russia that manufactures passenger car tires and retreaded truck tires mainly for the domestic market will stop operations in response to the continued crisis in the Ukrainian region. The company stated that it will continue supporting ...

Leoni has announced that it expects lower sales, EBIT before exceptional items and free cash flow for financial year 2022 compared to a previous guidance due to the war in Ukraine, a company press release on 15 March read. The company expects the reduced production volumes and partial production losses at its two sites in Ukraine cannot be fully compensated for in 2022 while its Russian business is likely to be affected by sanctions. The plants are situated at Stryi and Kolomyja in Western Ukrai...

Mercedes-Benz downsizes the production by cutting down shifts from three to two in some areas of its plant in Kecskemét, Hungary, effective from March 16 until the end of the month, reports news agency MTI. Russia-Ukraine conflict led to the shutting down of component supplier plants in Ukraine forcing Mercedes-Benz to downsize its production. In an effort to restore its supply chains, the automaker is closely monitoring the situation and working with its suppliers. The plant produced 160,00...

Japanese multinational auto parts manufacturer Bridgestone Corporation announced via press release on 14 March that it would be suspending local manufacturing in and exports to Russia in response to the ongoing conflict in the Ukrainian region. According to the press release, the company, as part of its new corporate commitment “Bridgestone E8 Commitment”, will suspend all operations in its car tire plant located in Ulyanovsk, Russia, from 18 March, after communicating with its employees ...

EU automakers such as Volkswagen and BMW are trying to shift to alternate suppliers of crucial parts built in Ukraine from far away countries like China and Mexico, according to a report published by Reuters on 14 March 2022. Volkswagen group is seeking to convince major suppliers to move their Ukrainian wire harness manufacturing to other factories Audi, Volkswagen's premium brand, said that the whole Volkswagen group is seeking to convince major suppliers to move their Ukrainian wire harnes...

Swiss polymer solutions and automotive parts manufacturer Rehau Group announced via press release on 4 March that it was suspending operations in Russia and Belarus in response to military operations initiated by Russia on 24 February in Ukraine. The company stated that Russia, in particular, was an important market for it and that it was hoping that the situation would change soon in a way that would allow it to resume its activities in the two countries. Significance: The Swiss comp...

Luxoft has announced its decision to exit the Russian market due to the conflict between Russia and Ukraine, according to an official statement earlier this week. “We strongly oppose the war in Ukraine and stand by those who are suffering as a result. We are doing everything we can to help our Ukraine colleagues, their families, and their communities. We hope this contribution will bring some relief to some of those affected. We call on other companies to do the same so that together w...

In an interview with The Financial Times on 10 March 2022, Volkswagen (VW) chief executive officer Herbert Diess has warned that a prolonged conflict between Russia and Ukraine would result in severe economic damage, worse than the COVID-19 pandemic, especially for the European countries. The VW boss also warned that the disruption of global supply chains could lead to huge price increases along with the scarcity of energy and inflation. In his interview with FT, Diess sai...

South Korean carmaker Hyundai Motor has canceled its plans to resume operations at its factory in Russia owing to persisting supply disruptions amid the ongoing Russia-Ukraine conflict, according to a news report filed by Yonhap News on 8 March 2022. The news agency said that the vehicle manufacturer had earlier planned to resume the temporarily suspended operations at its factory in St Petersburg on Wednesday but later called up the resumption owing to the persisting supply shortag...

Russia’s biggest carmaker Avtovaz plans to partially resume operations at its Togliatti and Izhevsk manufacturing facilities from 16 March despite a persistent shortage of components, according to a Reuters report on 10 March 2022. Citing the carmaker, the report stated that Avtovaz plans to resume operations as it wants to protect the incomes of its staff in Russia amid the ongoing conflict with Ukraine. Notably, Avtovaz, which is controlled by French carmaker Renault, had stoppe...

Stellantis has suspended import and export of cars from Russia amid the ongoing Russia-Ukraine conflict, according to The New York Times on 10 March. The automaker jointly operates a small manufacturing facility with Mitsubishi in Kaluga and employs about 2,700 people. Significance: Stellantis’s Russian facility exports vans to multiple European countries. Several OEMs have halted shipments as geopolitical tensions rise and disrupt the supply chain. Transportation via air and sea is al...

Bosch decided to suspend its production in Ukraine, Pledge Times reported on 9 March. The suspension is in line with many other manufacturers and suppliers who have taken a similar approach to ensure employee safety and on the back of shortages of components from supply chain constraints. Bosch has been operating in the region since 1993. Significance: Bosch manufactures a wide range of automotive spares, components, software, and energy-saving equipment, among other products, at the Ukr...

Swedish manufacturer of specialty naphthenic oils and bitumen products announced via press release on 2 March that the company had decided to halt purchase of feedstock of Russian origin from western non-Russian suppliers in response to the ongoing Russia-Ukraine conflict. According to the press release, in addition to this change to its purchasing strategy, the company had stopped sales to its customers in Russia and Belarus until further notice. Bo Askvik, president and CEO, Ny...

Suzuki has ceased vehicle deliveries to Russia and Ukraine from its Hungarian manufacturing plant, as of March, according to a report published by Reuters on 10 March 2022. Around 10,000 Suzuki cars are exported annually to Russia and Ukraine, the company said. Suzuki is also trying to shift the affected orders to other markets so that the company can continue to manufacture the cars as planned. "Our company has no direct Tier-1 suppliers in the areas affected," spokesperson Zsuzsan...

Leoni’s operations in Western Ukraine has been interrupted because of the conflict between Russia and Ukraine, Reuters reported 2 March. Leoni has two wire harness factories in western Ukraine. The company is looking to compensate for production losses because of “interruptions in our two plants in Stryi and Kolomyja, triggered by the Russian war of aggression against Ukraine,” Leoni said in a statement as reported by Reuters. The company has formed a task force to evaluate developments...

Hyundai Motor announced that it had canceled plans to restart operations at its manufacturing facility in Russia, according to a press release published by Automotive News on 9 March. The automaker initially paused operations at its St Petersburg plant owing to semiconductor shortages and was slated to renew production on 9 March, but due to supply chain disruptions, operations have been delayed. Significance: Several OEMs have halted shipments as geopolitical tensions rise and...

Continental has halted production at its factory in Kaluga, Russia, and is working on identifying other facilities where it can increase production to compensate its loss from the Russian plant, according to a press release published by Reuters on 9 March. The Kaluga plant produces and manufactures plastic products, tires, and rubber. The products from the Kaluga plant are primarily catered to the neighboring states and Continental has ceased all imports and exports from Russia until furthe...

Japanese supplier Fujikura Automotive halts operations at Lviv Plant in Lviv city following the ongoing Russia-Ukraine crisis, the company announced in a press release on 1 March. The halt in production is in line with many other manufacturers and suppliers who have taken a similar approach to ensure employee safety and on the back of shortages of components from supply chain constraints. Significance: Ukraine is home to major suppliers including Fujikura, Leoni, Kostal, Aptiv, and Nexan...

The US-based technology supplier Aptiv decides to relocate the high-volume production units of its ancillary parts out of Ukraine over a couple of months, as reported in Automotive News Europe on 25 February 2022. The company’s decision comes in response to supply chain constraints caused by the ongoing Russia-Ukraine crisis, which could potentially disrupt its production lines. "Over the course of the last couple of months, we actually moved a couple of what I call high-runner programs out...

German automaker BMW will resume its production line next week at its Munich and Dingolfing plants, according to news published by Reuters on 10 March 2022. The company suspended its production owing to supply chain constraints concerns caused by the Russia-Ukraine conflict. However, the company said that its BMW Mini production will continue to be halted in Oxford for another two weeks. The company’s Regensburg and Leipzig plant will operate on a single-shift basis for the current week and...

Futures and forwards exchange London Metal Exchange (LME) published a notice on 8 March that it was suspending trading in nickel following an unprecedented increase in nickel contracts causing short sellers struggling to pay margin calls. The price of nickel surged to over USD100,000 per metric ton on 8 March according to the LME, five times its value in January 2022. Significance: Nickel is one of the many commodities, including oil and aluminum, where price has risen sharply since t...

Finnish tire manufacturer Nokian Tyres announced via press release on 8 March that the company is activating its contingency plans to mitigate financial and operational impacts to its business in response to the Russia-Ukraine crisis. According to the press release, the contingency plans include: Shipping tires closer to customers Securing the raw material supply to its factories Transferring production of selected key product lines from Russia to Finland and the US Securing trans...

Spanish automotive supplier Gestamp announced that it would be halting production at its four Russian plants in response to supply-chain constraints caused by geopolitical tensions in the Russia-Ukraine region, according to a press release published by the company on 7 March. The company stated that it was facing shortage of certain components because of the crisis and thereby ceasing all operations. Significance: The Russia-Ukraine conflict has triggered a wave of international sanctions and...

Yandex, a Russia based autonomous vehicle technology company decided to halt its on-road testing program in the US, The Verge reported, citing Automotive News on 4 March 2022. The company said that it would cease testing its autonomous robo-taxi fleets and sidewalk autonomous delivery service, in Ann Arbor, Michigan. “We hope to resume the operations in the future,” the report said, citing a spokesperson from Yandex. Yandex was first introduced in the international market in Con...

German automaker Volkswagen has halted its production line at its home plant in Wolfsburg in Germany by at least a week due to a shortage in parts supply that are manufactured in Ukraine, according to a report published by Automotive News Europe on 7 March 2022. On similar lines, the production at BMW and Mercedes-Benz is also impacted as the two carmakers have also halted their production lines in Germany due to the supply shortage of components that are produced in Ukraine. The German Autom...

The ongoing conflict in Ukraine has disrupted production at several supplier facilities, forcing them to announce temporary production suspensions or shifts of production operations to other sites, opening another front for carmakers scrambling to stabilize their production output in light of the ongoing semiconductor shortages. Tier-1 suppliers, such as Leoni, Gentherm, Aptiv, Kostal, Kroschu, Fujikura, Sumitomo Electric, Nexans, Yazaki, and Prettl, have plants in Ukraine producing primarily wi...

French tire manufacturer Michelin announced via press release on 3 February that it would be halting production at some of its European plants in response to supply-chain problems caused by geopolitical tensions in the Russia-Ukraine region. The company stated that it was facing logistical and transportation issues in supplying its plants and delivering products to its customers because of the crisis. To optimize its operations and adapt its flow management to the current situation, the compa...

Canadian automotive parts manufacturer Magna halts operations in Russia following the ongoing Russia-Ukraine crisis, the company operates six facilities and employs around 2,500 people, according to The Globe and Mail on 4 March. Significance: The Russia-Ukraine conflict has triggered a wave of international sanctions and will likely complicate trade relations with Russia. Materials and components were already in a fragile recovery phase due to the COVID-19 disruptions in supply chain an...

In response to an investor query on the potential impact of the ongoing Russia-Ukraine conflict on its operations, the global supplier of innovative thermal management technologies, Gentherm Inc. said that its manufacturing plant in Vynohradiv, Ukraine, which is near the Hungary border, is operating at normal capacity. The company had updated its investors through a regulatory filing on the US securities and exchange commission on 24 February 2022. Calling the situation in Ukraine ‘flu...

Neon is used for the manufacturing of mature process nodes, which are already under supply chain pressure. The reduction in gas supply will likely lead to higher neon prices but will this cause any significant supply shortages of semiconductors? The supply chain and technology team of IHS Markit has been monitoring the Russia-Ukraine crisis to closely assess its impact on the already challenged automotive semiconductor supply chain. It is anticipated that the semiconductor grade neon supply f...

Aluminum prices surged to a record high on 1 March after western sanctions hit the Russian industry in response to Russian military operations in the ongoing Russia-Ukraine conflict. According to the metal price index of the London Metal Exchange (LME), the price for aluminum rose to USD3,604 per ton as of 2 March. According to report by Reuters on 1 March, the disruptions to the aluminum market price were driven by Rusal, one of Russia’s top aluminum manufacturers, halting s...

Military operations by Russian armed forces in Ukraine since 24 February and the subsequent economic sanctions placed on Russia by international states have raised concerns about the possibility of supply chain and price inflation issues for materials and components critical for the global automotive industry. The primary concern has emerged over the future supply of metal palladium, used in sensor chips, computing memory applications and catalytic converters, and neon gas, used in ...

Volvo Cars has suspended car shipments to Russia until further notice due to the ongoing geopolitical actions between Russia and Ukraine, according to a statement published by Reuters on 28 February. The Swedish automaker’s decision aligns with the potential risks associated with trade relations based on sanctions imposed against Russia, the statement added.    Significance: According to Reuters, Volvo becomes the first automaker to halt shipments as geopolitical tensions rise and...

The mounting tensions amidst a potential Russia-Ukraine conflict is increasingly bothering the global industry stakeholders who estimate that the struggle between the two countries could negatively impact the recovering supplies of semiconductors, several reports claim. According to a Reuters report filed on 11 February 2022, the White House has already warned the chip industry to diversify its supply chain as a cover against the possibility of Russia blocking access to key materials in return t...