Russia-Ukraine War Could Stop Automobile Production

The automobile industry has been one of the areas most affected by the COVID-19 outbreak. Because of the pandemic chip crisisslowed automobile production worldwide. This led to higher automobile prices and making it more difficult to buy a vehicle. But now, it is said that a new crisis awaits the automobile world. The new cause of the crisis, War between Russia and Ukraine.

You may not have understood how the war between Russia and Ukraine could lead to a crisis in the auto industry. Let’s explain now; Russia, the world’s leading from raw material suppliers one. This country is critical for nickel, which is used in batteries for electric cars. even the world third largest nickel supplier Russia. Similarly, palladium, which is used in catalytic converters in cars with internal combustion engines, is plentiful in Russia. Country, 40% of the global need meets it alone.

If Putin stops exports, the automotive industry may also come to a standstill

When we look at the developments in general, from Ukraine side We can say it is. The West especially applies the economy card in order to end Russia’s attacks and to make the country passive. This situation creates anxiety for the future of the automobile industry. Because Russian President Vladimir Putin is against the embargo of the west. can play the issue stop card. This brings the end of the automobile giants in the west in production. If companies can’t find new suppliers, automobile production will expand globally. interrupted may come by.

Russia is not just a supplier of raw materials for the automobile industry. The country is one of the giants of the world. production base it has become. More than 1 million cars are produced annually in Russia. A significant part of these cars are also exported. Putin, in case the West imposes an embargo on him, will also increase the export of automobiles. slow it down or stop it altogether. In such a case, the most affected would be automobile manufacturers and consumers.

It should also be noted that; The war between Russia and Ukraine has already directly affected the prices of raw materials. For example, the price of palladium as of the war broke out. up to $2,500. This means that even in the absence of an embargo, the automobile industry will be affected. According to industry sources, the reflection of the increase in palladium price on vehicles is up to $150 in cars such as sedans and hatchbacks, and in SUVs and larger vehicles. up to $200 will be…