Car industry reacts to Russian invasion of Ukraine

Car industry reacts to Russian invasion of Ukraine

Skoda has issued a statement regarding Russia’s invasion of Ukraine. The Czech firm, which has around 600 employees in the country and produces vehicles there in Solomonovo, will donate around €400,000 (£333,390) to the charity People in Need. 

It has also stated it will support any Ukrainian workers to “build a safe life in the Czech Republic”, assisting with visa applications, accommodation, language courses, employment and education. 

“‘Human’ is one of our company’s brand values,” Skoda said. “Now it’s more important than ever to put this value into action. Join us in making a contribution and supporting those who need our help.”

Skoda is also having to reduce production, due to supply shortages caused by the invasion. 

“Due to the current situation in Ukraine, Skoda Auto is facing critical supply shortages of parts from several local suppliers that have an effect on some of our models,” the company said. “This is the reason why we will limit production of the Enyaq iV from this week on.”

Skoda’s supply chain consists of several suppliers based in western Ukraine. It also has two factories in Russia, which are still running. Further disruption is expected.

“The sales strategy in Russia and Ukraine is currently the subject of intensive discussions. Sales in both Ukraine and Russia can be expected to fall in view of recent developments,” the firm said. 

Russia was Skoda’s second-biggest market in 2021, taking delivery of around 90,000 vehicles. 

Volkswagen

Volkswagen has paused deliveries of cars to local dealerships in Russia, due to supply chain issues exacerbated by Russia’s invasion of Ukraine, the Russian RIA news agency has reported. 

Production will be halted for “several days” this week at two factories in Volkswagen’s home country of Germany, because required parts haven’t been made in Ukraine.