BMW and Audi have stopped shipping their vehicles to China by train, due to the ongoing war in Ukraine, according to a report from Nikkei business daily.
A spokesman for BMW said in the report, “Due to the current geopolitical situation, our train transport on the Silk Road and Trans-Siberian Railway has temporarily been switched to alternative routes or transportation modes to ensure planning and supply security.”
The stoppage comes as a result of client insurance and increased risk of Russian confiscation.
Two months ago, BMW said that it would halt the export of cars to Russia, as well as discontinue production in the country. Similarly, Audi adjusted its manufacturing operations in Hungary one month ago due to supply chain issues caused by the conflict. The factory currently produces the Q3 and TT models at the plant, as well as engines for other VW group brands.
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China is the largest market in the world for both automakers, with BMW selling more than 652,000 vehicles in the country in 2021, and Audi selling slightly less at 643,500 vehicles. Automakers have been hit hard by the war in Ukraine, as the ongoing conflict has caused supply chain shortages accounting for thousands of vehicles waiting to be finished.
At the end of March, Audi was forced to pause production of the Q4 e-tron, A4, A5, A6, A7, TT, Q7, and Q8, until a few weeks into April. It’s a similar story with BMW, which was forced to shut down operations at its plants in Munich, Dingolfing, Oxford, and Steyr at the beginning of March.
In addition to the war in Ukraine, the Coronavirus pandemic caused significant delays in vehicle production, while chip shortages continue to plague the industry around the world.
