Ukraine war to worsen semiconductor shortage
30 March 2022
Ukraine produces half the world’s neon gas, which is used in semiconductor production – and the war is predicted to “hammer car production” due to factory closures. The complexity of producing neon gas means it’s not easy to change suppliers either: it could take two years to ramp up alternatives.
Audi has already written to retailers warning production at some locations is being stopped for days or weeks and they should prepare for “significantly longer delivery times”. Even cars that remain in production are only available in limited engine variants.
Volkswagen has announced it is delaying the sales launch of the ID.5 for a month due to parts supply disruptions: this has hampered its ability to produce sufficient demonstrators for retailers.
Tags:
Why Subscribe?
As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:
- Get informed and boost your business potential
- More than 1,200 fellow executives have joined us since launch
- Independent, carefully crafted, unique content relevant to you and your business
- Develop a greater awareness of market trends and opportunities
- Access to a wide range of materials whenever, wherever and however you want it
- Significant discounts on ARN events, reports and other publications
