Ukraine’s importance to the automotive industry has been known at least since the wiring harness bottlenecks shortly after the outbreak of war. Now the situation for vehicle suppliers is tense again. Reason: Long border checks.
Companies that produce in Ukraine complain about enormous delays at the Polish-Ukrainian border. Waiting times for trucks are now so long that customers can no longer receive deliveries on time, reports the Spiegel, based on information from various companies. The automotive supply industry is particularly hard hit here.
Leoni: 5,500 employees in Ukraine
If the border issues are not resolved soon, “we may have to withdraw production from Ukraine, even if we are reluctant to do so,” Ingo Spengler told the magazine. Spengler is on the board of cable giant Leoni, owned by Stefan Pierer since the summer. Leoni has 5,500 employees at two locations in Ukraine.
The background for the border delays is the dispute between Poland and Ukraine over Ukrainian grain exports. Farmers fear a drop in the price of their products because important export routes are blocked by the Russian blockade of Ukraine’s Black Sea ports.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
