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Car industry woes show how global conflicts will reshape trade
After trade wars and the pandemic exposed the acute vulnerability of global supply chains, the war in Ukraine will force all companies to reckon with their exposure to an increasingly hostile political climate.
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The Renault factory in Dieppe, France. The biggest foreign carmaker in Russia is the Renault-Nissan-Mitsubishi Alliance.
PHOTO: AFP
Jack Ewing
(NYTIMES) - The auto assembly lines going quiet in Germany, Britain and Austria are more than just another example of how fragile supply chains have become. The shutdowns may foreshadow a fundamental reordering of the global economy that Russia's invasion of Ukraine will accelerate.
The conflict has underlined the risks of doing business in authoritarian countries - not just Russia, but also China - raising questions about the growing dependence of the automobile industry on the Chinese market.
