German based car manufacturer Volkswagen Group (ETR: VOW3) claims that the global chip shortage pushed it to sell 2 million fewer cars last year. The company made this revelation on March 15 further adding the ongoing Russia-Ukraine conflict will even worsen the situation this year.
The Russia-Ukraine war has been affecting the global supply chain of metals and oil products pushing their prices drastically north. In return auto manufactures have been incurring higher production which is always pushed to their customers.
“Volatility in commodity markets could continue into 2026, exacerbated by Russia’s invasion of Ukraine, which has caused prices of materials key to car production like nickel and palladium to soar,” said Volkswagen.
In addition, Volkswagen reported increasing revenue across all major regions in 2021 including Asia Pacific where it had registered declining unit sales attributed to favorable product mix and exchange rates effects.