The impact of Russian sanctions on the European automotive industry continues to grow. Manufacturers with a strong presence in the region are already struggling to cope with the low availability of parts, as import-export rates squeeze Russia's material supply and inflate component costs. The conflict has damaged manufacturers' confidence not only in the Russian automotive industry but also in the industry's capacity to produce and export vehicles efficiently.
A closely watched auto-industry forecaster lopped more than 5 million cars off its projections for global production this year and next, largely due to fallout expected from Russia’s invasion of Ukraine. S&P Global Mobility, formerly known as IHS Markit, lowered its 2022 and 2023 estimates each by 2.6 million vehicles. The forecaster now expects auto companies to make 81.6 million cars worldwide this year and 88.5 million next year.
Supply chain issues currently experienced across the globe are heavily impacting a number of sectors, not least the automotive industry. Largely stemming from disruption caused by the COVID-19 pandemic and a recent boom in demand for products, the supply problems are creating a rippling effect, from price tensions and surges for materials to—perhaps most significantly—the global chip shortage.
Never in my long career have I been so amazed to see the remarkably enabling environment being provided by policymakers to the Indian industry with a view to enhance manufacturing value-add in the country. The government is investing in the long-term growth of our manufacturing secto by prroviding a strong financial booster shot in the form of the Production Linked Incentive Scheme.
Automakers including Volkswagen, BMW and Porsche are struggling to obtain crucial wire harnesses as suppliers in western Ukraine have been shuttered by the Russian invasion of the country, forcing production stops at car factories in Germany.
Production of the part, needed for organizing miles of vehicle cables, has affected suppliers including Leoni, Fujijura and Nexans.
A wire harness is a vital set of parts which neatly bundle up to 5 km (3.1 miles) of cables in the average car. They are a crucial part of a vehicle's electrical system.
The automobile sector, which has been struggling with rising commodity prices following the COVID-19 jolt, needs a long-term strategy outline for a robust recovery, say experts ahead of the upcoming Union Budget 2022-23.
For the electric vehicle segment, which has a promising outlook, a reduction in the Goods and Services Tax (GST) is necessitated for e-two wheelers, they point out.
From shortages of crucial semiconductor chips to shutdowns at major assembly plants, as well as skyrocketing car prices and empty dealerships, 2021 was a year to remember for auto manufacturers and consumers alike.
General Motors is expected on Tuesday to outline plans to invest $6.5 billion for EV projects at two sites in Michigan.
The investment would create 4,000 jobs in Orion Township and the Lansing suburb of Delta Township in Eaton County, according to a Jan. 25 board meeting agenda for the Michigan Strategic Fund that was posted online Friday.
