–
–
Volkswagen has temporarily shut down two of its plants in Germany – in Zwickau and in Dresden
–
The German car group Volkswagen has temporarily suspended two of its plants in Germany – in Zwickau and Dresden, due to problems with the supply of components from Ukraine, the company said in a statement.
Zwickau is home to VW’s largest production center for electric cars, with 1,200 cars a day.
The shutdown of both plants is temporary, pending an assessment of the situation, the carmaker’s boss, Herbert Dees, was quoted as saying.
It is not clear from the announcement what exactly are the components whose exports from Ukraine have been suspended. Only data are cited that the suppliers of VW Group are about 40 thousand companies, including those located in western Ukraine.
“I expect other shutdowns of carmakers’ production lines, as aluminum and steel production is largely concentrated in Russia and Ukraine. But these will be short-term suspensions until other suppliers are found, “Lyubomir Stanislavov, executive director of the Bulgarian Automotive Cluster, told 24 Chassa.
Aluminum is used mainly in more expensive cars, and in more mass – steel and sheet metal, which is made from it.
Meanwhile, aluminum rose sharply on the stock market on the third day after the Russian invasion of Ukraine. Its price, which has already risen by about 50% in 2021, has reached $ 3,388 per tonne, which is about $ 500 more than it was at its peak in 2008.
However, analysts say the aluminum market has recent experience in dealing with disruptions to the Russian market. In 2018, the United States imposed sanctions on United Co. Rusal International by Oleg Deripaska, which increased stock market prices by 30%. The sanctions were lifted after Deripaska agreed to reduce his ownership and relinquish control of Rusal.
Deripaska’s reaction to the current sanctions against Russia is quite annoying to Russia’s economic policy. He said a few days ago that Russia now needs crisis managers and the government to at least clarify what economic policy it intends to pursue.
–
