Russia's War with Ukraine Will Affect the Auto Industry
The Russian and Ukrainian war not only affects the automotive industry's production, it may also lead to a rise in gas prices.
Written by Serena Aburahma
Reviewed by Kathleen Flear
The auto industry is already seeing problems in production due to shortages caused by the recent pandemic. But, things are about to get as bad as it's ever been in
car history
. The conflicts in Russia and Ukraine will cause issues in many areas, including the auto industry. How are brands handling the Russia/Ukraine war?
The European market appears to be most affected by the war between Russia and Ukraine. Automakers overseas get supplies from both countries, so those lines are on pause at the moment until things calm down.
Mitsubishi and Mercedes-Benz plan on re-evaluating their business goals in that region.
Other companies like Volkswagen halted production altogether, according to
MotorTrend
. Hyundai and Kia have plants in Russia and a big chunk of its market is also in the country. So, these brands may get hit the hardest.Some of the automakers use materials for EV production that come from Ukraine as well as Russia. It could majorly impact electric vehicle manufacturing for most automotive companies.
Let Jerry find your price in only 45 seconds
No spam · No long forms · No fees
Russian/Ukrainian war sanctions affect vehicle production
In response to President Vladimir Putin's part in the war with Ukraine, the U.S. has decided to hit Russia's economy with sanctions.
While it may show our country's displeasure at Putin's decisions, it will, however, cause a bit of turmoil for the auto industry, which is already seeing shortages of vehicles on dealer lots.
According to
NBC News
, Russia is one of the largest suppliers of nickel, palladium, and other heavy metals used in producing automobiles. Nickel is used in Lithium-Ion batteries
needed for electric cars while palladium is in catalytic converter production. Finding those metals elsewhere for the manufacturing plants outside of Russia becomes difficult. South Africa and Zimbabwe are alternatives for both ore, but prices for them are rising fast, which could make obtaining them very expensive for production.
Prices for cars are high enough as it is. Adding the Russian and Ukrainian war to the mix could make some out of reach for the average consumer.
The automakers producing vehicles on Russian soil will be affected by the sanctions as well. With no imports of the supplies they usually get from other countries, production lines will cease as some companies are already doing, at least until the sanctions lift.
Will gas prices be affected by the Russian/Ukrainian war?
MORE: Supply Chain Problems Are Causing a Whole New Set of Problems in the Auto Industry
According to
CBS News
, gas analyst Patrick De Haan believes that the price of gas should go up to $3.75 in many areas in the next week or so because of the conflict between Russia and Ukraine. He also predicts that if the war persists, we could see a whopping $4 a gallon by the first of April. He goes on to explain that things could get even worse than that. We could see costs rising to $4.10 and up in the coming weeks or months.
However, we could see some relief if Iran and the U.S. come to a renewed nuclear deal. Of course, areas like California have seen the $4 a gallon price and could see it go even higher.
How to deal with rising insurance costs
With the rising prices happening globally, insurance inevitably gets hit as well. Finding an affordable policy that covers what you need is frustrating and time-consuming. How do you handle the rising cost of insurance in times like this?
The best way is to sign up for
Jerry
. We will search through insurance companies to find the best results for policies that will offer you the coverage you need for your vehicle without paying too much for it. 
4.7
.jpg&w=64&q=75){kind=avatar}
