In this Monday, March 21, 2022, image made from video, Mark Wakefield, co-leader of AlixPartners global automotive unit, speaks during an interview with The Associated Press at the consulting firms offices in Southfield, Mich. Russias war on Ukraine is bringing new problems to the global auto industry. As Wakefield said: You only need to miss one part to not be able to make a car. – BMW has halted production at two German factories. Mercedes is slowing work at its assembly plants.
Supply problems have bedeviled automakers since the pandemic erupted two years ago, at times shuttering factories and causing vehicle shortages. The robust recovery that followed the recession caused demand for autos to vastly outstrip supply — a mismatch that sent prices for new and used vehicles skyrocketing well beyond overall high inflation.
“Until inflationary pressures start to really erode consumer and business capabilities,” Fulthorpe said, “it’s probably going to mean that those who have the inclination to buy a new vehicle, they’ll be prepared to pay top dollar.” “Long term,” Massaro told analysts, “we’ll have to assess if and when it makes sense to go back to Ukraine.”