Global supply chain issues have been exacerbated by Russia's invasion of Ukraine as Eastern Europe auto factories have shut down and prices of materials are inflating.
The continued slow downs have lowered sales forecasts for the next two years, including S&P Global Mobility cutting forecasts back by 2.6 million vehicles and European auto production forecasts down 9% (1 million cars), CNBC reported.
Coming out of the global COVID-19 pandemic, in October 2021, S&P Global Ratings analysts had projected a 4-6% rise in global auto sales for 2022. But now that projection for this year has been slashed to a 2% decline, according to the report.
While Ukraine and Russia account for just 2% of the global auto market, the shortages on the supply chain have wider-reaching impacts.
Ukraine has been a key supplier of wire harnesses for automakers, while Russia produces about 40% of the world's raw palladium – used to clean vehicle exhaust, according to the report.
The region is also a relied upon source for nickel – used in electric vehicle batteries – iron, and other common minerals and metals.
Eric Mack ✉
Eric Mack has been a writer and editor at Newsmax since 2016. He is a 1998 Syracuse University journalism graduate and a New York Press Association award-winning writer.
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