Why Russia’s Invasion Of Ukraine Has Sent Automakers Scrambling

Among the numerous costs of Russia’s war with Ukraine, the invasion has shuttered Ukrainian factories and imperiled the livelihoods of workers who make key parts for some big automotive names - BMW, Mercedes-Benz, and Volkswagen. Russia is also a key producer of raw materials, and the war has sent automakers scrambling to rebalance their supply chains. The human cost is far greater, but this is another blow to companies that have faced a cascade of challenges since early 2020.

00:00 -- Intro
1:56 -- Chapter 1
6:24 -- Chapter 2
8:39 -- Chapter 3

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Why Russia’s Invasion Of Ukraine Has Sent Automakers Scrambling

[camadams]

Funny, companies that outsourced their jobs to reduce costs are now facing extinction.
Oh well

[john_doe_not_found]

People with older cars are praying their car has no major breakdown any time soon. Auto prices leave buyers feeling ripped off right now.

[hurrdurrmurrgurr]

At this point corporations are rolling dice to decide their next excuse for raising prices.

[kennylong]

For decades, too many cheap vehicles have been produced. Vast storage lots exist everywhere, where perfectly good vehicles are being allowed to rot, and rust.

[lesgriffiths]

I'm OK. My 1942 Willys Jeep MB LHD still has its original electrical harness....it looks it works a treat.
The stop light still works....so do the panel/dash lights....I have never replaced a bulb in the 40 years I have owned it....and I bought it in April 1982 when it was the M.A.S.H. competition prize in Brisbane, Australia. Thank you Willys Overland Co. of Toledo you for this amazing piece of engineering. It will go for forever.
Les Griffiths

[mrchristoph]

Wow, the guy basically says you want a country where you can exploit the workers but a country close to home.

[JamesSmith-ixjd]

Turns out raw resources and food are more valuable than fiat money, who could have thought..

[peterschmidt]

Most of or near all gizmos in a modern vehicle are not necessary for taking it from A to B. It’s just tech development to please our vanity.

[garyK.ACP]

Exactly! My wife is Ukrainian. Born and raised in Kharkiv. One of our three sons was working as an engineer for a manufacturer in Kharkiv, Ukraine, which makes parts for German automobiles.
The factory was operating sporadically after the invasion and is currently not in production. Our daughter in law and grandson have evacuated to Koln (Cologne) Germany. Our son is still in Kharkiv and volunteering to work with emergency services. Mostly delivering aid. Kharkiv has a huge industrial base and many European manufacturers have factories there, mostly producing labor intensive parts (like wiring harnesses) due to very low wages. Factory workers get paid 10, 000-15, 000 UAH/month. $340-500/month.

[billybonecollector]

I’m sure Russia is willing to sell whatever raw materials you need in Rubles of course.

[danthelongman]

I have worked with auto wiring harness suppliers before.. they are impossible to automate and entirely dependant on manual operators. This makes it very difficult to "shift production" to another location/company as you need alot of time (couple of months to a year) just to train new workers to make the part fast enough (reaching the required cycle time), even if you have all toolings and machines ready and set up. Such an intense labor production would also mean hiring of willing workers is very crucial, quite a number of workers quit because of the low pay and they could find better less complicated job (such as being a cashier for example) elsewhere. This really affects the company's workforce and continued production.

[vlocke]

I work on wire harness routing for oem from Europe. Yes the issues is big and other components are still hard to get since it’s in Russia and it’s delayed.

[IgorGjurovski]

They are also making wire harness in Macedonia. Salary is 350 Euro per month and treatment of the workers are inhumane and cruel!

[reverendblkgrape]

At this point anything and everything will be used as an excuse to increase prices and claim “issues”.

[billwhitis]

I've never heard a better justification for price gouging. When will corporate profits come back to "normalized levels"?

[Baynewsvideo]

Tesla is cranking out cars day and night in Fremont, Ca.
No shortage of chips for Tesla.

[Iamthestig]

We don’t need screens and automated interiors. Wiring harnesses have grown in number because people think they need screens and computerized interiors. Get rid of body control modules and just run a computer for the engine.

[dfk]

Another excuse for greedy Capitalists to raise prices and profits. A Volkswagen GTI is now $10K over sticker price...

[anthonysmz]

Stop buying new cars, and you'll see how fast car prices drop. Stop buying anything that is overpriced.

[boucheramouad]

Aptiv, an ireland automotive company has decided to move from Ukraine to my country Morocco to profit from low cost labour and inhuman work conditions.