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Destruction of the car market? How the war in Ukraine is destroying the global auto industry

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We tell how the war between Russia and Ukraine affects the global auto industry

The global auto industry is suffering losses because of the war / Photo: Getty Images, Collage: Today

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Russia’s full-scale aggression against Ukraine is seriously harming the global auto industry.

This is evidenced by data from S&P Global.

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It is noted that because of the war in Ukraine, the production of cars will sharply decrease in the world. Analysts believe that due to Russian aggression, the European auto industry will suffer the most, the damage to which is estimated at about 1.7 million cars in 2022, and about the same in 2023. We are talking about cars that enterprises will not produce.

In addition, the European plants of the BMW and Volkswagen concerns have already felt a shortage of Ukrainian-made auto components, so they were forced to suspend their work. Before the war, Ukrainian enterprises supplied cables, harnesses and other components for 500 thousand – 1 million cars. Finding new suppliers can take a year.

Experts predict that the invasion of the Russian army into Ukrainian lands will lead to a shortage of automotive microchips and logistical problems of underproduction of passenger cars. According to various estimates, it will be 25 million units by 2030.

Automakers are fleeing Russia

Russia is isolated from the other world because of the attack on Ukraine. European and global companies do not want to work with the Russian Federation, including BMW announced the cessation of the production of its cars at the facilities of the Russian plant in Kaliningrad, and also refused to supply its cars to the Russian Federation.

They also refused to export their cars to the aggressor country:

  • Volvo;
  • Ford;
  • Skoda;
  • Volkswagen (also stops production in the Russian Federation);
  • Cadillac;
  • Chevrolet;
  • Audi;
  • General Motors;
  • GMC;
  • Jaguar
  • Buick.

And companies such as Daimler Truck and the largest automotive corporation, General Motors, have also said they will no longer do business in Russia.

Segodnya also wrote what sanctions were imposed against Russia, and told which company was stopping sales in the Russian Federation.

Source: Segodnya

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