Here's how the Ukraine invasion is affecting the auto industry

Posted at 6:13 AM, Mar 04, 2022
and last updated 2022-03-14 14:48:27-04

(WXYZ) — As the war in Ukraine against Russia rages on, the auto industry has growing concerns about how this war will impact its business.

"There are some serious implications for the automotive industry that we are just beginning to see from this situation," School of Business Administration at Oakland University Professor Janell Townsend said.

Ukraine and Russia both produce commodities like aluminum to palladium. They also produce raw materials like nickel and lithium which are used to make things like batteries and power electric vehicles.

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"Neon. Something like 80 to 90% of global neon supply, which is not just for bar lights but is used in the lasers that are then used to produce semiconductors," Townsend adds.

The war is also affecting the semiconductor shortage even more.

Edmond Douglas, the VP of Operations at Avis Ford says his company is still dealing with shortages of certain vehicles due to the semiconductor chip shortage

New cars have been sitting in fields and parking lots waiting for chips.

Avis Ford says supplies are better than what they were before. They have a few more cars on the lot, but they say it's best to order and look early if you want to buy a new car.