Ukraine’s vital link in the European supply chain
By Namrita Chow2022-03-15T07:47:00
The closure of Ukraine’s supplier industry and the impact on logistics routes reveals how important the country is to European automotive production
While the corporate retreat from Russia and subsequent stop in production there has been reported, European vehicle manufacturers have also struggled directly with shortages in components sourcing and production from Ukraine. Overall, there are 22 foreign companies that produce automotive parts in the Ukraine at 38 factory facilities, according to Ukraine Invest.
Of that production, one of the most important to the automotive supply chain is for wire harnesses. Leoni, for example, a global producer of automotive wire harnesses, has closed its two plants in Stryi and Kolomyja, both in western Ukraine. Stoppages at Leoni, as well as other suppliers including Fujijura and Nexans, have impacted production of vehicles in Europe from carmakers including BMW, Mini, Volkswagen and Porsche.