Foley & Lardner LLP Partner Nicholas Ellis is quoted in the Automotive World article, “OEMs adjust strategies as Russia-Ukraine war continues,” discussing the continuing impact of the Russia-Ukraine conflict on automakers.
Ellis said, “The war in Ukraine and sanctions on Russia have affected supplies of these [metals/gases used in semiconductors] and other raw materials. When supply goes down, prices go up.”
"Combined with an industry already facing higher costs for labor and shipping, this will add further pressure on prices, which are already a source of significant friction between companies across the automotive supply chains," Ellis continued.
"The war and resulting trade restrictions have required many companies to alter their operations and relationships, including sourcing and production, on the fly. Rising costs are driving a large number of commercial disputes between buyers and sellers while, at the same time, causing many companies to rethink their approach to contracting," Ellis added.