Audi Halts Orders of PHEVs Due to Ukraine Crisis
First chip shortages, now wiring harnesses cause Audi to halt PHEV orders and production.
Just when supply chain issues seemed to be improving, Audi announced a halt to orders on some of its plug-in hybrid models. According to Germany’s Automobilwoche and Automotive News, the move not only affects Audi, but VW, and Porsche. Effective this week, Audi plans to suspend orders for the A4, A5, A6, and A7 PHEVs. This pause follows VW’s announcement, suspending orders for their PHEVs including the Golf, Tiguan, Passat, Arteion, and Touareg. In the coming days, we expect Porsche and other group brands to make similar announcements soon as well.
The Volkswagen Group expects this stoppage to be temporary, allowing time to ensure delivery on current orders. However, the timeline for delivery may take longer than expected. Orders for some VWs already take up to a year due to the semiconductor shortage. Now VW faces a shortage of wiring harnesses due to the conflict between Russia and Ukraine.
Auto industry analysts predicted the Russia-Ukraine armed conflict would significantly impact supply chains. Formerly a manufacturing hub in the Soviet Union, the Ukrainian auto industry saw a revitalization in the past 25 years as European automakers and parts suppliers invested over $600 million. Today the industry employs over 60,000 people across 38 plants, producing wiring harnesses and other parts used by European and Asian manufacturers.
In addition to pausing PHEV orders, Volkswagen AG announced that it would stop all production and sales in Russia. This move follows other manufacturers, including BMW, Mercedes-Benz, Volvo, Volkswagen, Ford, Honda, and Toyota, who recently stopped exporting vehicles and motorcycles to the country. Many of these same companies plan to donate money and supplies for Ukraine assistance.
Photos: Audi
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