The war in Ukraine is lowering the bar for sales in the automobile industry, which now has to weigh on the one hand the large increase in raw materials and on the other the desire to keep car prices stable. And all this in a climate of intense uncertainty, as a result of the war in Ukraine.
The words of the strong man of VW, Herbert Diess, are well-known, who stressed that a prolonged war in Ukraine could prove to be worse for the car industry than the pandemic, while it could lead to large increases in car prices.
In this climate, we should not forget the revised goals set by most manufacturers, as they believe that the war will greatly affect car sales and the supply chain in the short term.
Analysts point out that the war will affect up to 15% of European car production, while there will be a big problem with the lack of spare parts for all those factories that are in Ukraine and have suspended their operation. However, in this climate, many automakers have stopped production in Russian factories, further aggravating the situation.
If we are talking today about big increases in basic goods, the same path of increases has been taken by car raw materials. The prices of steel, aluminum and nickel as stock products have risen sharply and are dragging all the products that depend on them.
Electric propulsion with expensive technology remains expensive and this situation burdens the whole effort to spread it. Perhaps the only positive thing in the whole case is the reduced cost of operating the car, as electricity remains the cheap form of energy in the car.
Research and studies by car analysts estimate that the reduction in car production will last for at least the next two years. We should also not forget the lack of semiconductors, which is another problem that plagues the car industry and is another factor that is holding back car sales. Despite rising car prices, deliveries are still low, with the wait lasting many months. So the absurd thing happens, that while companies have many new models, there is no corresponding availability.
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