After new supply chain disruptions caused by the Ukraine crisis hit this week, BMW is planning to gradually resume output at its Munich and Dingolfing plants, reports say.
BMW is planning to gradually resume operations at its vehicle manufacturing plants on Munich and Dingolfing plants next week, media reports say.
However, Reuters also reported that BMW cautioned that it expected further interruptions due to both the Ukraine crisis and ongoing semiconductor shortages.
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By GlobalDataThe Reuters report also said that production by BMW’s Mini brand in Oxford would remain suspended for two weeks.
Europe’s auto industry is reeling from supply chain disruption caused by war in Ukraine. Wiring harnesses have emerged as a crucial pinch point. Cable assemblies from Ukraine are sent to Leoni plants across Europe for eventual supply to OEMs such as Opel, Porsche, Volkswagen, Audi and Lamborghini. The wiring harness products are often specified to order for particular vehicle platforms and models, with very limited inventory held. When supply from Ukraine was disrupted in late February the impact on vehicle manufacturers was immediate.
Wiring harnesses are relatively complex components, so production cannot be rearranged at short notice or easily substituted. The German OEMs, in particular, have been and will continue to be impacted by supply disruption from Ukraine – though Leoni will likely be working hard on developing alternative capacity sources (such as plants in Tunisia).
