BMW and Volkswagen close European plants

BMW and Volkswagen have suspended operations in Europe due to a shortage of spare parts produced by Ukrainian companies.

German carmakers Volkswagen and BMW have suspended operations in Europe, according to the Financial Times. The decision was made in connection with the closure of factories producing electrical cables.

According to AutoAnalysis, Ukraine accounts for about one-fifth of European power cable deliveries. The rest will be delivered from Eastern Europe and other parts of North Africa.

Volkswagen CEO Herbert Diess told the newspaper that the company has been developing alternatives to parts production since the start of the “operation” in Ukraine. But due to complex logistics, it is difficult to implement production.

Amid Russia's "military operation" in Ukraine, which began on February 24, many Western countries have imposed economic sanctions on Russia, and foreign companies have begun to leave the Russian market. Production has been suspended or supplies to Russia have been restricted, including automakers such as Jaguar Land Rover, Harley-Davidson and MAN.