The interruption to global supply chains "could lead to huge price increases, scarcity of energy and inflation," Diess told the Financial Times in a report on Thursday.
VW CEO Herbert Diess says the Ukraine war's economic damage could be worse than pandemic
Diess warns Ukraine war could could lead to huge price increases, scarcity of energy and inflation.
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Diess also said that Europe faces huge threat of higher inflation from prolonged conflict in Ukraine.
VW did not immediately respond to a Reuters request for comment.
European automakers including VW, Porsche, BMW, and Mercedes-Benz are struggling to obtain crucial wire harnesses as suppliers in western Ukraine have been shuttered by Russia's invasion, forcing them to curtail production.
VW brought forward a production stop at its home factory in Wolfsburg due to parts shortages.
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