Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Ukraine crisis
March 02, 2022 10:47 AM

Europe's auto production crashes as flow of wire harnesses dries up

Why BMW, VW, Porsche and others are shutting down production lines after supplies of key part from Ukraine are interrupted.

Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Leoni wire system

    Leoni, a leading global supplier of automotive wiring systems, says logistics in and out of Ukraine are a challenge.

    Automakers including Volkswagen, BMW and Porsche are struggling to obtain crucial wire harnesses as suppliers in western Ukraine have been shuttered by the Russian invasion of the country, forcing production stops at car factories in Germany.

    Production of the part, needed for organizing miles of vehicle cables, has affected suppliers including Leoni, Fujijura and Nexans.

    A wire harness is a vital set of parts which neatly bundle up to 5 km (3.1 miles) of cables in the average car. They are a crucial part of a vehicle's electrical system.

    Leoni, which has two wire harness factories in western Ukraine, is scrambling to compensate for production losses. The Germany company has two Ukrainian plants in Stryi and Kolomyja.

    Leoni said it had formed a task force to evaluate developments.

    How to subscribe

    Automotive News Europe is the trusted source of information for automotive business leaders and executives. To get full access to our unrivalled coverage of the European auto industry, click here.

    Industry sources say it could take months for suppliers to increase capacity at alternative locations in their networks -- requiring factory space, machinery and tools, workers and financing.

    Prior to the invasion, parts maker Aptiv spent months doing just that -- shifting high-volume production of parts for vehicles out of its two plants in Ukraine ahead of possible hostilities, the company's chief executive said last week.

    Delivery bottlenecks have already hit some assembly plants of Volkswagen including its home factory of Wolfsburg and its German EV plants, while Porsche has suspended production at its Leipzig plant.

    BMW is being forced to stop production of BMW and Mini cars in its German and other European plants.

    LEONI

    A passenger car can require up to 5 km (3.1 miles) of cables.

    To cut costs and better compete in the global car industry, suppliers including Germany's Forschner, Kromberg & Schubert, Prettl, SEBN and Japan's Yazaki have built up a hefty wire harness production sector in Ukraine, which also has a skilled work force.

    According to an analysis of 2020 Comtrade data by consultancy AlixPartners, wire harnesses were Ukraine's most critical automotive component exported to the European Union, accounting for nearly 7 percent of all imports of this product.

    UkraineInvest, the Ukrainian government's investment promotion office, says 22 automotive companies have invested more than $600 million in 38 plants employing over 60,000 Ukrainians. Many, though not all, are producing wire harnesses.

    Those plants are close to car factories in Germany and the manufacturing hubs that international carmakers have built in central Europe.

    RECOMMENDED FOR YOU
    Autoliv's price increases help Q4 core earnings top expectations
    Recommended for You
    Autoliv logo
    Autoliv's price increases help Q4 core earnings top expectations
    STMicro sign
    STMicro expects growth on strong auto demand
    CATL factory, Erfurt, Germany
    CATL's German plant targets six battery cell production lines by the end of 2023
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us