Volkswagen warns that war in Ukraine has started to hit supply chains and costs

The German car manufacturer says war in Ukraine is already impacting its supply chains and material costs.

Volkswagen has warned that it has started to feel the impact of the war in Ukraine on supply chains and raw material costs.

Volkswagen has warned that it had started to feel the impact of the war in Ukraine on supply chains and raw materials prices in the first quarter, with the longer-term effects on its business difficult to predict.

The company indicated an €8.5bn operating profit for the first three months of the year, but noted that €3.5bn of that was attributable to commodity hedges amid soaring raw material prices. Volkswagen shares rose around 1%.