New production slowdown
The conflict in Ukraine and the broader tensions surrounding the Russian invasion have rippled through every sector of industry across Europe. The automotive industry is among the most volatile in times of crisis, and the disruption to value chains continues to expose weaknesses. After a period of supply shocks tied to microchips, the automotive sector began to see a more gradual push toward deglobalization of manufacturing, a trend unfolding at a careful pace. Components sourced from Asia, coupled with the war in Ukraine, intensified pressures on key materials and supply lines. Russia and Ukraine remain important players in automotive supply chains for metals and specialized components such as palladium, neon gas, and advanced wiring and semiconductors. Today, the primary challenge persists in securing materials and ensuring reliable logistics and shipping, particularly by road.
Rising costs for raw materials and fuel, alongside the added friction of semiconductor supply constraints, created a perfect storm that widened gaps in vehicle production. Market exits from the Russian market and canceled contracts with dealers, as well as partner restructurings, affected many manufacturers. For example, major stakeowners Renault and Nissan faced shifts in their European commitments, and the broader impact of disengagements from Russia touched the outcomes of most auto companies in 2022 to varying degrees.
New production slowdown
European manufacturers began by idling factories, which immediately impacted car delivery timelines. Large groups such as Volkswagen, Stellantis, and BMW endured notable setbacks. In Spain, production flow at principal centers slowed largely due to issues with wiring harness production. Thousands of kilometers of cables are bundled as assemblies that travel through each vehicle, and several Ukrainian factories play a major role in supplying these components.
The leading producers Leoni, Forschner, Kromberg & Schubert, Prettl, SEBN, Japanese Fujikura, Yazaki, and Nexans faced significant disruption. It is estimated that Ukraine contributed around seven percent of the global cable supply. Last year the gaps were mitigated by sourcing cables from other parts of Europe, including North Africa. Yet shipments stretched out, and delivery times extended by months as orders dwindled while production faced new headwinds. At a Barcelona dealership, a recent delivery revealed equipment marked with asterisks indicating supply problems and delays tied to bundled parts.
No driver
One crucial yet often overlooked factor was the shortage of truck drivers. The portion of the supply chain responsible for moving cars from factories to showrooms largely depends on road transport. The conflict disrupted this backbone as almost 200,000 European carriers faced suspension of operations, with drivers in Ukraine, Belarus, and Russia stepping back from long-haul routes. The result was a knock-on effect on service and turnaround times, as vehicle logistics stalled.
Observations from industry insiders highlight that the shortage of drivers transformed a typical bottleneck into a persistent problem. Brands reported that about 80 percent of demand was fulfilled on request rather than from immediate stock, leading to noticeable stockouts across dealers. The inability to move cars efficiently to the front lines of sale further compressed the already tight inventory. Stellantis brands echoed similar concerns about delayed deliveries as the supply chain struggled to adapt.
Undelivered cars
Dealers found themselves hesitant to promise exact delivery dates for vehicles already sold. Shipping from European factories added to the complexity. The real-time fluidity of vehicle transport faced slowdowns as trucks roamed limited routes and schedules, often delaying customer timelines. Some dealers reported that even when orders existed, cars remained parked at ports or yards as it took longer to complete the logistics chain.
Manufacturers choosing to rely on alternative approaches to conveyance continued to face delays. In some cases, teams monitored shipments in real time, hoping for timely arrivals. The market remained constrained with insufficient stock, even as production continued in some facilities. The overall cycle showed that vehicles could be produced but not delivered quickly to customers, underscoring the fragility of the current supply ecosystem. Citations point to the integrated nature of the supply network and the critical role of logistics in sustaining sales velocity across the auto sector.[Source: Industry Analysts]