Volkswagen Group CEO Herbert Diess made remarkable statements regarding the supply crisis that started with the Russia-Ukraine war.
In the automotive world, which started to feel the effects of the war between Russia and Ukraine after the coronavirus and chip crisis, there is an uncertainty about the process at this stage. In addition to the sanctions imposed by the manufacturers for Russia, the disruption of the supply chain in the region causes operational disruptions. For this reason, the CEO of Volkswagen Group, Herbert Deiss, who had to take a production break in its facilities in important points, especially in Germany, made remarkable statements about the process. Expressing his concerns about the deepening of the war, Diess emphasized that the economic effects for Germany and Europe could be much worse than the pandemic and chip crisis processes.
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Volkswagen Group CEO Diess drew attention to price increases
It has been frequently stated that the supply chain will deteriorate as the crisis between the two countries turns into a hot war. The successful manager, who stated very clearly in his statements that this problem will express price increases in terms of space, also gave very clear statements about the sanctions against Russia.
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Financial TimesSpeaking to Diess; “When we look at the infrastructures of countries such as Germany, we can see that they are dependent on Russia in important points such as raw materials and energy. The scenario where we think that we put all trade relations with Russia on the shelf also means that there will be no energy flow from here. This situation creates significant effects in Germany as well as in all of Europe. Although we support the sanctions, we think that the process should be concluded with negotiations to be held at the table.” he stated. With the start of the invasion, Volkswagen Group decided to stop production at its facilities in Russia.