Magyar Suzuki, the Japanese automaker’s subsidiary in Hungary, is now included in the list of car manufacturers halting automobile exports to both Russia and Ukraine. This announcement comes as the conflict between the two East European countries raged on for the second straight week.
Suzuki's subsidiary in Hungary is stopping vehicle exports to both Russia and Ukraine
Reuters reports that the automaker has suspended export activities to either side, in a sign that the ongoing war is spilling over to the rest of the region.
“Our company has no direct Tier 1 suppliers in the areas affected,” said Magyar Suzuki spokesperson Zsusanna Bonnar-Csonka. “However, we are continuously monitoring the entire supply chain,” adding that the worldwide shortage of semiconductor ships remains the biggest challenge.
The company is transferring affected orders to other markets
According to Magyar Suzuki, it delivers about 10,000 cars to Russia and Ukraine on a yearly basis, with both markets accounting for roughly one-tenth of its annual exports. Recent figures place the company’s total sales in 2020 at 119,098 cars, including 101,672 vehicles in overseas markets. Among these is the fourth-generation Suzuki Vitara compact crossover sold in the Philippines.
The suspension of vehicle exports to Russia and Ukraine has left Magyar Suzuki with a surplus of affected orders, which it said is being redirected to other markets to maintain its scheduled production volumes.
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Bonnar-Csonka said that Magyar Suzuki’s operations have been further impacted by rising energy costs and the weakening of Hungary’s currency, the forint, which has shrunk by 3 percent against the euro. She says that the company may eventually have no choice but to implement price increases to pass on the added costs to customers.
Other carmakers in Hungary include German marques Mercedes-Benz and the Volkswagen Group through its subsidiary Audi. Both automotive giants have also made their moves in connection with the Russia-Ukraine conflict. The Volkswagen Group has stopped its operations in Russia, while Mercedes-Benz has donated 1 million euros (Php 57.4 million) to the Red Cross for humanitarian assistance.
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