The Ukraine war has intensified existing part supply issues.
China’s output will be prioritized.
China, in fact, is the answer for many automakers. As one of the largest auto markets in the world, holding a decent market share here can make or break a brand. Volkswagen holds a 16% in China and not only wants to hold it but double its EV numbers in 2022. VW will focus its production efforts there.
The Ukraine conflict is putting the squeeze on automakers in Europe. The already difficult task of finding parts has been made more complex and has forced several assembly plants to halt production. Volkswagen is in this predicament and will shift more production responsibilities to North America and China.
“We will shift more into China because of the situation in Europe,” Volkswagen CEO Herbert Diess said.
The concern, as brought up by Automotive News Europe, is the possibility that China could attack Taiwan. “China has a high interest to keep borders open,” Diess said. “We think it is an asset for us to be strong in China. China is a stronghold for us.