Russia’s devastating war on Ukraine is bringing a whole set of new problems to the global auto industry, just as it was starting to recover from the pandemic and computer chip shortages.
Before the war, S&P Global had predicted that global automakers would build 84 million vehicles this year and 91 million next year. Now it’s forecasting fewer than 82 million in 2022 and 88 million next year.
One factor behind the dimming outlook for production is the shuttering of auto plants in Russia. Last week, French automaker Renault, one of the last automakers that have continued to build in Russia, said it would suspend production in Moscow. Aptiv, based in Dublin, is trying to shift production to Poland, Romania, Serbia and possibly Morocco. But the process will take up to six weeks, leaving some automakers short of parts during that time.
"The training process to bring up to speed a new workforce — it’s not an overnight thing,” Fulthorpe said.
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