In spite of the fact that some Ukrainian suppliers have managed to keep their businesses running during the war, Russia’s invasion of the nation has left many automakers without the components they require.
“The good news is that some suppliers are still in operation, and others have already reopened,” Schuster said of the situation. “There’s a little bit of flow coming out. Overall, however, it is the close proximity that has left [the German missions] particularly vulnerable.”
The Volkswagen Group, in particular, has suffered as a result of the supply chain interruptions. According to LMC, five Volkswagen plants lost more than 10,000 units of projected output during the month of March, with three of those plants having to reduce production by more than 20,000 vehicles.
Schuster noted that making forecasts in the midst of the war’s uncertainty is tricky, but LMC predicts that Germany’s automakers will see their April output levels perform better than they did in the previous month.