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March 03, 2022 04:37 AM

Mercedes is forced to cut shifts at European plants

Russia's invasion of Ukraine disrupts supplies of key components; Russian production and exports have been halted.

Nathan Eddy
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    Mercedes E-Class production near Moscow

    Mercedes is halting output at its Russian factory near Moscow. Shown is E-Class sedan production at the plant.

    BERLIN -- Mercedes-Benz expects to reduce production at some of its European plants as supplies of parts produced in Ukraine run short.

    The automaker said it will adjust shift planning at individual plants next week, but it will aim to avoid complete production stoppages.

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    Click here for a roundup of how Russia’s invasion of Ukraine is impacting the auto industry.

    "The high flexibility of the plants will also be used to avoid downtime as much as possible," Mercedes said.

    The automaker said it is working with suppliers to find alternative production sites for parts made in Ukraine.

    "We are closely monitoring the situation and are in close contact with our suppliers to work intensively together on solutions to secure our supply chains," it said.

    The Ukraine crisis is having a growing impact on auto production in western Europe as supplies of key components such as wire harnesses produced in the country come to a halt.

    BMW, VW and Porsche have been forced to shut down production lines in Germany because of parts shortages.

    German automakers are warning the fallout from the invasion of Ukraine will get worse and are bracing for shortages of neon gas for microchips, palladium for catalytic converters, and nickel ore for lithium ion batteries.

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    Russia production stops

    Mercedes said it is halting production at its Russian plant and suspending the export of passenger cars and vans to the country, after Western countries imposed sanctions on the country following Russia's invasion of Ukraine.

    The automaker's plant near Moscow builds the E-Class sedan and SUVs.

    Mercedes joins other automakers in stopping activities in Russia, once considered a promising growth market for Western automakers but now largely isolated through economic sanctions.

    BMW has halted production at a factory in the Russian exclave of Kaliningrad, and suspended vehicle exports to the country.

    Volkswagen said on Thursday it is suspending its Russian business including production until further notice.

    VW has vehicle production sites in Kaluga and Nizhny Novgorod.

    The automaker said no cars from VW Group brands will be exported to Russia.

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