According to foreign media reports, on March 17, Hildegard Wortmann, head of sales and marketing for German luxury car brand Audi, said that the situation in Russia and Ukraine is expected to cause "massive disruption" to the global supply chain. He pointed out, "We will see a huge disruption to all supply chains from the situation in Russia and Ukraine, not only the chip business, but all global supply chains."

　　Source: Audi

　　Recently, global automakers such as Volkswagen Group and Audi are trying to maintain the supply chain of key components such as semiconductor chips and wiring harnesses affected by the situation in Russia and Ukraine. Automakers have warned that the Russian-Ukrainian situation has created significant uncertainty over this year's auto production, sales and financial forecasts.

　　Although Russia and Ukraine account for a small share of global auto production, they provide key raw materials for the production of semiconductor chips, which have been in short supply for more than a year due to the new crown epidemic. Ukraine is also one of the main suppliers of wiring harnesses and other raw materials, mainly to European automakers. In addition to wiring harnesses, European automakers source seat fabrics from Ukraine, Wortmann noted.

　　Other automakers such as Mercedes-Benz and BMW have announced production adjustments or cuts due to the situation in Russia and Ukraine. On the same day, Alfons Dintner, chairman of Audi Hungary, said that due to supply chain problems, engine production shifts at the Gyor plant in Hungary are being adjusted and exports to Russia have been stopped. Last year, the plant produced 1.6 million engines, including 250,000 electric drivetrains.

　　But Dintner added that the impact on the Hungarian plant "wouldn't be too big". "Our revenue will be down slightly, but it's the beginning of the year and we have a lot of good opportunities to make up for the losses before the end of the year."

　　Source: Audi

　　Wortmann declined to predict the impact of the situation in Russia and Ukraine on Audi's sales in 2022, citing the uncertainty of the situation. On March 16, due to the escalating situation in Russia and Ukraine, an automotive market consulting firm lowered its forecast for global light vehicle production in 2022 and 2023 by 2.6 million units to 81.6 million units and 88.5 million units, respectively. The company revealed that 45% of the wiring harnesses produced in Ukraine are usually exported to Germany and Poland, and that the shortage of wiring harnesses in Ukraine will put German automakers at great risk.