VW and Renault Shutter Operations As Russian Invasion Impacts Supply Chains
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Volkswagen and Renault will suspend operations temporarily as Russia’s invasion of Ukraine impacts European supply chains.
VW will halt production at its Zwickau and Dresden plants in eastern Germany for a few days in early March because of a shortage of electric cable sets made in Ukraine.
Renault will shutter operations at its Moscow assembly plant because bottlenecks at the Russian border have delayed parts deliveries, a spokeswoman said. Another plant, operated by Renault’s AvtoVaz venture in Togliatti will halt production over a shortage of semiconductors.
Russia’s invasion has caused a fresh set of challenges for companies still reeling from the pandemic. Automakers have been forced to curb production over the past two years because of an ongoing shortage of semiconductor chips.
German automotive companies and suppliers maintain 49 production sites in Russia and Ukraine.
Renault produces the Kaptur and Duster models at the Moscow site and makes Lada cars through its AvtoVaz venture. Russia is the French automaker’s second-largest market, accounting for 18% of sales by volume.