The automotive sector is suffering two parallel crises, the one caused by the shortage of microchips and the one derived from the Russian invasion of Ukraine. The Chairman of the Board of Directors of the Volkswagen Group has analyzed both situations.
In a scenario of energy crisis and scarcity of raw material, the future of many companies in the automotive section is uncertain and concern is growing around many jobs.
The Volkswagen Group, one of the most powerful in the world, is no stranger to this and Herbert Diess has analyzed the impact of two events that have further aggravated an already precarious situation. It is about the war between Russia and Ukraine, which has come at a time when the shortage of semiconductors was already seriously affecting production and sales.
Spain, less affected
In statements to Cinco Días, the German leader admits that “there are several circumstances that make the current scenario very difficult”, although he also predicts that “The limitations of semiconductors will not continue to be a problem, surely in the second half of the year this will be alleviated”.
However, war is another matter and the unpredictability of a conflict of these characteristics is already noticeable in the German automotive group. «We have had to stop the activity in some of our German plants due to the supply limitations caused by the war, which fortunately are recovering ».
“In turn, we have the COVID-19 outbreak in China, which led to a situation where we had to close some of our factories there. If this situation improves, we still have a chance to win and sell more cars than last year.. Definitely,” says Diess hopefully.
Fortunately for the group’s factories in our country, the problems derived from the war are being noticed to a lesser extent here, clarifies Herbert Diess. «Spain is less affected by the war than our German factories, which need Ukrainian wiring harnesses».
Uncertainty
While the semiconductor crisis worries Volkswagen less, the same cannot be said for the war, which has already forced many brands to close factories and suspend all business in the area.
“The two VW plants in Russia are closed and what the group will decide on this remains up in the air. We are paying our employees there, about 7,000 people. We’ll wait and see what happens,” says Diess.
«I see less affectation for the company by the war than by the semiconductors. But I think that if we have to face a war with high prices for raw materials and high rates of inflation – approaching 10% – with the energy dependency that we currently have, It is a scenario of very bad prospects for Europe»alert, to conclude.
Source: Five days