Audi expects the Ukrainian crisis to be a huge hurdle for the 'tremendous interference' chain, CNBC reported.

“We will see tremendous interference with all the supply chains, not just the chip business, but any supply chains internationally,” Hildegard Wortmann, head of the car company’s sales and marketing, said during a media roundtable Thursday. “The consequences will be tremendous out of this on the whole supply situation.”

Automakers around the world, including Audi and its parent company Volkswagen, are trying to maintain supply chains for critical parts such as semiconductor chips and wiring harnesses. They warn that the conflict creates extreme uncertainty about car production, sales and financial projections.

Although Russia and Ukraine account for a small amount of global automotive production, they supply key raw materials for the production of semiconductor chips, which have been in short supply for more than a year due to disruptions caused by the coronavirus pandemic. Ukraine is also a major supplier of wire harnesses and other materials, mainly to European automakers.

Wortmann said that in addition to the wiring harnesses that are used in vehicles to supply electricity and communicate between parts, the automaker also sourced seat fabrics from the country.

Audi has said it is adjusting production at its Hungarian plant due to supply chain issues, Reuters reported. Other automakers such as Mercedes-Benz and BMW have announced adjustments or production cuts.

Wortmann declined to predict how the war would affect the company's sales in 2022, citing the instability of the situation.

S&P Global Mobility cut its forecast for global light vehicle production for 2022 and 2023 by 2.6 million units in both years, to 81.6 million units for 2022 and 88.5 million units for 2023 due to the war.

According to S&P, about 45% of wire harnesses produced in Ukraine are typically exported to Germany and Poland, which puts German automakers in a vulnerable position.