Global Auto Production In 2022 Is Estimated To Drop By Millions Due To The Russian-Ukrainian War

The war between Russia and Ukraine shocked the world. Western governments imposed severe sanctions on Russia, and multinational companies also followed suit. As far as the auto industry is concerned, as companies suspend operations in Russia, local auto production in Russia will be the most affected in the near future, causing ripple effects that will reduce global auto production by millions this year. Russia's attack on Ukraine has exacerbated supply chain problems facing the auto industry, including components such as wire harnesses for automotive electronics, as well as components such as catalytic converters and automotive chips, CNBC reported. supply is more limited. Russia and Ukraine are important producers of raw materials such as neon and palladium. Palladium is mainly used in catalytic converters of gasoline vehicles, using chemical reactions to convert exhaust gas into general gases to reduce harmful substances emitted by automobiles. Neon, a by-product of Russian steel and then purified in Ukraine, is an indispensable gas for the semiconductor exposure process. Jeff Schuster, president of global forecasting and the Americas at LMC Automotive, said the Russia-Ukraine war could reduce global auto production by millions in 2022, with the reduction estimated to be as high as 700,000 in Europe.