Volkswagen Group is currently fighting shortages of raw materials and wire harnesses as long-term impacts of war remain uncertain
The acquisition of raw materials has also been affected, particularly for EV battery production, with prices expected to rise. ICE vehicles also require elements that are impacted by the shortages.
“We're building up additional capacities for wiring harnesses for Europe and are shifting car production to regions such as China and the Americas,” saidDiess revealed that production of around 100,000 vehicles had been moved to the Americas and China and added that production outlooks for the year could be affected.
“The dominant constraint is indeed wiring harnesses," Diess said. "We receive wiring harnesses from Ukraine from 11 plants. Nine of them are working on reduced capacity. “The pandemic is receding and the semiconductor supplies are expected to improve steadily throughout the year. But the war in Ukraine has put our existing outlook into question."
Volkswagen has been forced to halt production at several of its factories in Germany, including its MEB-platform-focused facilities of Dresden and Zwickau.
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