3/1, 6:22 PM (Source: TeleTrader)
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VW and BMW supplies hit due to Ukraine conflict

German car manufacturing giants Volkswagen and BMW are facing further production disruptions due to the Ukraine crisis, with the facilities of some of the most important auto wiring companies, such as Leoni, Nexans, Yazaki and Kromberg & Schubert, being endangered in the conflict.

"The conflict in Ukraine has far-reaching effects on the production of the local supply industry," said a BMW representative on Tuesday. "Our task force continues to work on cross-divisional and cross-brand solutions," a VW spokesman also stated.

The issue is particularly hindering with respect to the companies' production processes as the endangered firms are tasked with manufacturing hand-made wiring harnesses of which each one is unique and represents one of the most expensive parts of the vehicle.

Baha Breaking News (BBN) / SP