Special Report, Tech, Americas
Posted: 08 Jun 2022 06:32
“If we cannot supply the plant, if that is the reality, we have either to transfer that production to other plants, or just limit ourselves,” Tavares said during an earnings call Wednesday. America’s two largest automakers have been out of the Russian market for several years. Ford shuttered operations, including a plant in St. Petersburg, in 2019. General Motors began to pull out in 2015 and sold off its remaining stake to Avtovaz in 2019. Now controlled by France’s Renault, Avtovaz said in a statement it is looking for alternative sources of supplies, such as semiconductors, but cautioned it is “premature” to predict how the crisis will affect the company. One reason is that it remains unclear which of America’s allies will adopt the new sanctions. There is also concern in the industry that Russia’s allies could strike back. “The big question is what China does,” Abuelsamid, the analyst, said. “If we put heavy sanctions on Russia, they might respond and cut us off from many of the things we need,” including circuit boards and other raw materials, such as the lithium needed for electric vehicles.
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