Skoda says it has partially relocated wire harness production from Ukraine to the Czech Republic in close cooperation with affected suppliers after supplies from western Ukraine were disrupted by war.
The carmaker also said it is securing additional production capacity in Morocco and other countries. The aim of the measures is to safeguard the company from potential supply bottlenecks and supply chain disruptions in the future. The agreements will make it possible to double current production volumes if necessary, Skoda said.
Karsten Schnake, Board Member of Purchasing at Skoda Auto said: “At Skoda Auto, we have been working very closely with our partners over the past few weeks to minimize the impact of the war in Ukraine on the supply of wire harnesses. With great dedication, we managed to resume production in Ukraine within a short period of time and also significantly increase production capacity. I would like to thank the entire team and all suppliers involved for this achievement. At the same time, I can assure our Ukrainian partners that we are and will remain fully committed to them. They have our deepest respect for continuing to supply us when conditions permit.”
Due to war-related supply bottlenecks, Skoda had to shut down production of the all-electric ENYAQ iV for eight weeks from March 3 due to a shortage of wiring harnesses. In order to restart production as quickly as possible, the carmaker and its suppliers quickly started looking for a duplication of the production of wire harnesses in other factories in Europe and North Africa.
Skoda and PEKM Kabeltechnik managed to move part of the wiring harness production from Ukraine to Mladá Boleslav within five weeks of the outbreak of the war. PEKM built the necessary production equipment in assembly halls supplied by Skoda and production was gradually ramped up from the beginning of April. The production facilities are staffed by 35 women from the Ukrainian factory in Lviv, who are now training new employees. Wiring harnesses for the Octavia, Kodiaq, Karoq and Superb model ranges will begin “in the coming weeks,” Skoda said.
In order to be as well prepared as possible for possible supply bottlenecks in the future, Skoda has secured additional capacity from the company Kromberg & Schubert at the Moroccan factory in Kenitra near Rabat. In addition, Kromberg & Schubert has now increased the number of wire harnesses produced at its Ukrainian plant in Zhytomyr. The demand for wiring harnesses for the production of the ENYAQ iV will be met in the future thanks to production at both locations – Zhytomyr in Ukraine and Kenitra in Morocco.
Skoda also plans to duplicate the production of high-voltage harnesses needed to charge electric vehicles, among other things. These will be produced in Romania from the end of June. From September, production from the plant in Khmelnyskyj, Ukraine, will also be doubled after consultation within the Volkswagen Group: the wiring harnesses for the Octavia and Superb models will also be produced in Tangier, Morocco.
See also: Urgent issues for automotive supply chains