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How The War In Ukraine Is Impacting The Auto Industry

How Has The War In Ukraine Impacted The Auto Industry?

The Russian invasion of Ukraine is starting to have a notable impact on the automotive industry. The crisis has caused disruptions at some assembly lines and many companies have suspended activities within Russia.

The Volkswagen group has ceased all production and sales. Many global manufacturers have soon joined- Porsche, Mercedes Benz, Ferrari, Audi, and Hyundai- among many other companies- have stopped manufacturing within the country.

The Tangibles 

Russia accounts for 10% of the world’s nickel and as such, the price of metals used in cars has skyrocketed. From aluminum used in bodywork to palladium used in catalytic converters to the high-grade nickel used in the batteries of electric vehicles. Ukraine supplies about 80-90% of the world’s neon, which is used in lasers that produce semiconductors.

What Does This Mean For Your Shop?

It is estimated that this halt in production and increase in the rarity of precious metals could exacerbate the shortage of chips and other vital car parts used in the production, maintenance, and repair of vehicles. This could further fuel the increase in the price of parts.

When faced with a situation like this, advice from previous blog posts still stand:

We can do little to curb the rising prices, and as such, we need to adapt. By keeping customer satisfaction high, we encourage them to continue recommending our services. Curating the customer service experience more personally will see your clients coming back time and time again.

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