After the shortage of electronic chips, the war in Ukraine is likely to have serious consequences for the European automobile industry. There are expected to be 700,000 fewer cars produced due to factory closures in Ukraine, according to estimates by Wells Fargo analyst Colin Langan. Ukraine is a major producer of wire harnesses. Due to supply problems, Volkswagen and BMW have temporarily closed factories. The VDL Nedcar factory in Born, where cars are produced for BMW, was also closed for the same reasons. Mercedes-Benz has slowed production at a German plant.
German auto parts supplier Leoni is one of the companies with a factory in Ukraine where wiring harnesses are produced. The company lowered its annual forecast due to the closure of its factory. Leoni hopes to double production at other factories but it might take several months before that happens.
In Ukraine there are 17 factories that produce wire harnesses.
