The ongoing armed conflict between Russia and Ukraine has caused the automobile sector to be concerned, which is already suffering from the consequences of the global semiconductor shortage caused by the COVID-19 epidemic.
The automobile sector is concerned by the Russia-Ukraine conflict
Consumers will have to wait to see what impact it may have on new car prices, automobile production and the supply of components to the UK after the crisis put fuel costs through the roof.
The Renault Group has 3 factories in Russia and 14 in Europe. One of those factories is located in Moscow. The company manufactured 13 different models in russia last year, some of the most knows models are Dacia Duster, Dacia Sandero and Renault Captur.
“We are following the ongoing situation very carefully,” said a Renault spokesperson.
The VW Group has activated a crisis team to assess the impact of the dispute on business activities in the countries involved.
An official from Volkswagen Group stated that:
“The Volkswagen Group views the Russian attack on Ukraine with great concern and dismay. Volkswagen is hoping for a quick cessation of hostilities and a return to diplomacy.”
Skoda, Audi, SEAT, and Volkswagen are members of the Group, which has 120 manufacturing locations in 19 European nations. It has two modest production facilities located in Russia dedicated to supplying the local market.
Our thoughts are with all people on site! #Ukraine pic.twitter.com/WBLbYb2pNU
— Volkswagen Group (@VWGroup) February 24, 2022
Not all firms are negatively impacted by the Russia-Ukrania conflict. For example, Ford does not use any aftermarket parts sourced from Russia and none of its cars sold in Europe are built there.
Ukraine is a country in Eastern Europe. It is the second-largest country in Europe by size, after Russia, which borders to the east and northeast. The current population of Ukraine is 43,301,680 as of Thursday, February 24, 2022.
Russia-Ukraine conflict summary
The conflict began in February 2014, when Russia and pro-Russian forces attacked Ukraine, primarily over the status of Crimea and parts of the Donbas. The war’s major focus has been on the status of Crimea and other disputed territories that are widely regarded as part of Ukraine by international law.
Russian military buildup on Ukraine’s border has exacerbated tensions between the two countries and strained bilateral ties during 2021-22, with the United States delivering a strong message that an invasion would be met with severe consequences for Russia’s economy.
“I believe it is necessary to take a long-overdue decision, to immediately recognize the independence and sovereignty of the Donetsk People’s Republic and the Lugansk People’s Republic”
– Vladimir Putin
Analysts believe that this could be the start of a larger conflict in Ukraine, and many officials are labeling the action an assault on Ukraine’s independence.