​The attack on Ukraine is shocking people all over the world. Which significance do Russia and Ukraine have for the automotive industry, what consequences does the war have for HELLA and what help is being provided? An overview.

Friday 2022-03-04

The companies of the German automotive industry have unanimously condemned the Russian war of aggression. HELLA is also following the military attack on Ukraine with the greatest concern. Images of the acts of war move employees worldwide; thoughts and sympathy are with the people in the country and all those affected.

Which significance do Russia and Ukraine have for the automotive industry?

The role that Russia and Ukraine play for the global automotive industry, both as production and sales markets, is limited. In the calendar year 2021, only around 1.5 million vehicles were produced in both countries in total. This corresponds to less than two percent of global vehicle production. Nevertheless, there are some important supplier companies there. For example, up to 40 per cent of the demand for cable harnesses for the European market is covered from Ukraine

What are the immediate consequences of the conflict for HELLA?

HELLA does not have any production and development sites in Russia or Ukraine. In addition, there are no significant supply relationships with car manufacturers in the region. Therefore, the direct impact of the military conflict on the company is limited. HELLA's only presence in Russia is an aftermarket sales office with about 25 employees in Moscow. Contrary to the current reporting in the Lippstadt press, this office has not been closed, but deliveries to this location have been suspended until further notice in agreement with the local managing director and the customers there. For the time being, the HELLA team in Moscow is primarily occupied with internal service tasks.

What indirect effects does the war in Ukraine have on HELLA?

From a purely economic point of view, it is not yet possible to estimate exactly what consequences the war will have for HELLA. Many car manufacturers have interrupted their local production in Russia and also stopped exporting to the country. In addition, important supplier factories in Ukraine in particular have shut down, which has already led to considerable supply bottlenecks and interruptions in the supply chains. As a result, some car manufacturers have already had to cut back on production or, in some cases, close down completely. This decline will possibly also affect the demand for HELLA products. At the same time, further shortages and price increases for various raw materials and energy supplies are to be expected as a result of the war. However, it is also clear that the possible economic consequences for HELLA are out of all proportion to the human suffering caused by the war. HELLA therefore emphatically appeals for an immediate cessation of hostilities.

How is HELLA responding to the current situation?

HELLA immediately activated the global crisis team, which is closely monitoring and evaluating the situation surrounding the Ukraine war and its consequences. In addition to securing supply relationships in the European customer network, the focus is also on possible effects on neighbouring Eastern European countries with HELLA locations. Against this background, local task forces have also been formed there.

What commitment are HELLA's employees making?

The situation in Ukraine is shocking HELLA employees worldwide, and many have offered their help. At several HELLA locations, for example in Germany, Romania, Lithuania, the Czech Republic and Slovakia, a wide range of aid campaigns have already been launched within a short period of time. These range from donations in kind and financial aid to concrete support for Ukrainian workers in Slovakia. These initiatives are usually coordinated and carried out at local level, as this is where it is most likely to be possible to assess what kind of help is needed and how it can best be provided. HELLA will also continuously check to what extent the measures can be supported additionally.