Europe faces huge threat of higher inflation from prolonged conflict in Ukraine, Diess said.
Volkswagen Group CEO Herbert Diess warned that a prolonged war in Ukraine risks being "very much worse" for the European regions economy than the coronavirus pandemic.
The interruption to global supply chains "could lead to huge price increases, scarcity of energy and inflation," Diess told the Financial Times in a report on Thursday.
Click here for a roundup of how Russia’s invasion of Ukraine is impacting the auto industry.
Diess also said that Europe faces huge threat of higher inflation from prolonged conflict in Ukraine.
VW did not immediately respond to a Reuters request for comment.
European automakers including VW, Porsche, BMW, and Mercedes-Benz are struggling to obtain crucial wire harnesses as suppliers in western Ukraine have been shuttered by Russia's invasion, forcing them to curtail production.
VW brought forward a production stop at its home factory in Wolfsburg due to parts shortages.
