Forecasters say the global auto-industry will have more than 5 million cars thrown off its projected production capacity for 2022 and 2023.
The Russian/Ukraine war has affected the transportation of chips and other vehicle parts across Europe and will affect global production as well.
S&P Global Mobility, (formerly IHS Markit), lowered its 2022 and 2023 estimates each by 2.6 million vehicles. The forecaster now expects auto companies to make 81.6 million cars worldwide this year and 88.5 million next year.
“The downside risk is enormous” says, Mark Fulthorpe, S&P Global Mobility’s executive director for global production forecasting.
Ukraine is a major supplier of neon gas used in chip-making, palladium is also sourced from Russia. The platinum group metal is a base element of catalytic converters, which turn engine exhaust into less-toxic emissions.
More to the war is the outbreak of COVID-19 in China, stalling the productions of Toyota, Volkswagen Group and Tesla.
Reports on Detailed Vehicle History desk has it that most of these production plants are currently closed in Shenzhen and Changchun.