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Ukraine Plant Shutdowns Put 15% of Europe Car Output at Risk

  • Country is key source of wire harnesses for electrical systems
  • Supply issue could hit 10-15% of production, Wells Fargo says
A Leoni AG Wiring Systems Division plant in Nis, Serbia.
A Leoni AG Wiring Systems Division plant in Nis, Serbia.Photographer: Oliver Bunic/Bloomberg

The war in Ukraine could cost Europe’s automakers production of hundreds of thousands of vehicles because the country is a key source of wire harnesses that power car electrical systems.

The shutdown of wire-harness plants in Ukraine may lower output by as much as 700,000 vehicles in the first and second quarters, Colin Langan, an auto analyst at Wells Fargo & Co., said in a report. Volkswagen AG and BMW AG have already idled factories due to the supply disruption, while Mercedes-Benz AG has reduced output at a German factory.