New car buyers could experience an even longer wait due to Russia’s invasion of Ukraine, because of the impact it has had on some manufacturers who obtain certain parts from these parts of the world.
Ukraine is a prime exporter of neon gas, which is an essential part of the production process of the chips used extensively in new cars. Automotive production has already been badly affected over the past year by the microchip shortage, caused by manufacturers in the Far East closing their factories during the Covid pandemic. (See here for more information on Semi-conductor shortages: The automotive industry are continuing to face challenges post Covid-19 – CLM )
Russia is also the world’s third-largest producer of nickel, used in the lithium-ion batteries of electric cars, while around one fifth of the palladium used by the German automotive industry to make catalytic convertors also comes from Russia.
Meanwhile several European manufacturers building cars sold in the UK, including Ford, BMW, Renault and Volkswagen, are already suffering production delays and suspensions due to Ukrainian component manufacturers being unable to maintain supplies.
The war in Ukraine has a significant impact on the country’s automotive supply industry. The supply limitations and ever-changing situation is difficult to evaluate new car deliveries, however we are in communication with suppliers and will continue to keep you updated.
Thank you for your patience during this challenging time. CLM are proud to stand with Ukraine.