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VW Delay ID.5 Launch by a Month Due to Supply Bottlenecks Caused by Russia-Ukraine War

As the conflict in Ukraine escalates, the auto industry's future continues getting murkier. Supply bottlenecks, undelivered inventories, and price hikes are the order of the day. On Friday, VW Group announced they will delay the launch of the anticipated Volkswagen ID.5 to the first week of May due to disruptions caused by the ongoing conflict between Russia and Ukraine.
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After struggling through two years of a global health crisis, the automotive industry was just recovering from an industry-wide chip shortage. Industry insiders were hopeful the storm would calm down by the end of the year, but the Russia-Ukraine war erupted.

According to a letter from Volkswagen to dealerships, the disruption of the supply of wire harnesses from Ukraine means they can't produce enough exhibition models for all their sales partners, auto publication Automobilwoche reported.

Both Ukraine and Russia are vital regions when it comes to automotive production. Based on industry estimates, the conflict could reduce the global production of automobiles by millions of units in 2022, CNBC reported.

Russia's invasion of Ukraine has created a new supply problem for critical car parts such as wire harnesses, catalytic converters, and gases from the region used for semiconductor development.

International sanctions on Russia meant its oil exports didn't get to global markets, significantly affecting pump prices.

The letter further stated that units already in destination stations wouldn't get delivered to ensure that all VW Group partners get equal treatment. To ensure nationwide availability to every agent, the automaker will partially redistribute the exhibition models.

The ID.5 produced at VW's Zwickau plant, where production temporarily stopped, differs from the ID.4 from its B-pillars and lower roofline. It's a dramatically angled hatch with a great stance and improved aerodynamics.

Production at the Zwickau plant came to a stop due to supply chain issues caused by the ongoing Russia-Ukraine conflict was but will resume in the following week, Reuters reported.

The new ID.5 model comes in Pro and Pro Performance variants, both running exclusively with a rear-wheel-drive platform.

 
 
 
 
 

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