PRAGUE, March 22 (Reuters) – Skoda Auto, a part of the Volkswagen Group (VOWG_p.DE), mentioned on Tuesday that its provide accomplice in Ukraine has determined to restart manufacturing of wiring harnesses, which ought to permit the Czech producer to renew manufacturing of its electrical autos. ENYAQ iV mannequin.

Russia’s invasion of Ukraine has compounded provide chain issues for world automakers – which had been already grappling with semiconductor shortages which have curtailed manufacturing – with a disruption in wire harness deliveries. cables from this war-torn nation.

Whereas Skoda, the Czech Republic’s largest exporter, mentioned it expects semiconductor provide to enhance within the second half of 2022, it mentioned the battle in Ukraine and bottlenecks in provide bottlenecks would considerably have an effect on its operational actions.

Skoda’s 2021 deliveries fell 12.6% year-on-year and earlier this month it halted manufacturing of the ENYAQ on account of harness shortages, saying two extra fashions had been in danger as a result of lack of part availability. Learn extra

“Our accomplice … in Ukraine has determined to restart the manufacturing of wiring harnesses this week, with full service and full security for the employees there,” mentioned Karsten Schnake, Skoda board member for the purchases, throughout its on-line presentation of the 2021 outcomes.

Wiring harnesses are a key a part of a automotive’s electrical system, grouping and guiding cables contained in the automobile.

“We’ve got determined to double manufacturing within the occasion of an issue, and this manufacturing might be accelerated in an alternate manufacturing facility,” Schnake mentioned, including that work would start in three or 4 weeks.

“Hopefully we are able to restart ENYAQ manufacturing every week or two later when we have now wire harnesses,” Schnake mentioned.

Skoda delivered 878,200 vehicles worldwide in 2021, the primary time that determine had fallen under the million mark since 2013.

Nonetheless, VW Group model income rose 3.9% to 17.7 billion euros ($19.5 billion) in 2021 and working revenue rose 43.2%. % to 1.1 billion euros because of price measures.

Skoda didn’t give a monetary or manufacturing outlook, saying there have been nonetheless appreciable uncertainties following the battle in Ukraine and the affect on its Russian operations.

Skoda, like VW, has suspended manufacturing and different enterprise actions in Russia, which was its second largest market final yr, with 90,400 autos delivered.

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Reporting by Jason Hovet, modifying by Louise Heavens, Kirsten Donovan and Alexander Smith

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