Affected by the Conflict between Russia and Ukraine, a large number of enterprises have also suffered from difficulties, and there have been different degrees of production reductions, of which car companies are one of the industries. In order to cope with the shortage of chips, many car companies have begun to reduce the equipment of non-essential components. In addition to the corresponding supply impact, the production capacity exported by car companies has also become an important factor to consider. In order to avoid the impact on production capacity, the German car giant made a decision.
Affected by western sanctions, the price of many metals is also rising, the supply of chips is tight, and the development of many automotive industries is also greatly affected. In today's development of the situation, the growth of many companies will be greatly affected this year, taking into account the impact of a variety of factors, the car giant Volkswagen decided to prioritize the transfer of production capacity to China for development. Volkswagen announced its 2021 results, and vehicle shipments have experienced the lowest number of vehicles in a year, only 8.9 million units have been sold, but operating profit has doubled, and sales in the Asia-Pacific region have also declined.
It is reported that the wiring harness purchased by Volkswagen is generally imported from Ukraine, but due to the impact of the Russian-Ukrainian conflict, it has greatly affected the import of the wiring harness, not only the supply chain has been greatly obstructed, and due to the closure of Russian airspace, the Asia-Europe route has become congested, the cargo transportation has also been interrupted, nickel, palladium, wiring harness and other key materials for manufacturing automobiles have been in short supply or soared, which has greatly affected the sales of automobiles at the source. Factories in many parts of Germany have been forced to shut down or reduce production, and if other countries or supplier regions cannot fill the vacancies in Ukraine's supply parts in time, then Volkswagen will have to revise this year's business forecast in advance.
In addition, the Russian-Ukrainian conflict has caused global oil prices to rise, which has to some extent inhibited people's desire to buy cars, and many people will postpone the purchase plan. If prices and oil prices continue to rise, volkswagen will set its sights on China if it wants to stabilize production and sales this year. There are many wiring harness manufacturers in Mainland China that can maintain stable production and supply, which can effectively alleviate the shortage of parts caused by Volkswagen. And Volkswagen's factory in Anhui will start production in 2023, when electric vehicles will be mass-produced, and the mainland's new energy automobile industry will also stimulate growth, which is also a good driving force for the development of the new energy industry in the mainland.
In addition, the media also said that while car companies abandon the Russian market, it also means that Chinese car companies can gain more market share. In fact, in the era of global trade popularization, the impact of the Russian-Ukrainian conflict is unavoidable, and many companies will be implicated.