Volkswagen warns of dangers from the Ukraine crisis.
Volkswagen AG, Europe’s top carmaker, doubled its operating profit in 2021, but warned that the Russian invasion of Ukraine and its impact on supply chains could hit business this year in unpredictable ways.
According to foreign media, carmakers are trying to find alternative sources of vital parts made in Ukraine, including wire harnesses, from as far away as China and Mexico, as the Russian invasion halts assembly lines and breaks down complex supply chains.
“The conflict has an impact on the entire global economy, on raw materials, on supply chains and consequently on our company,” Volkswagen chief financial officer Arno Antlitz said.
“The impact of this cannot be conclusively assessed at this point in time,” he said, adding that the group was currently working on seeking other suppliers in Eastern Europe and North Africa to obtain wire harnesses.
Volkswagen said there is a risk that recent developments in Ukraine will have a negative impact on its business.
