Salem Radio Network News Sunday, May 29, 2022

Business

Continental plans price hikes due to $3.7 billion extra costs in 2022

FRANKFURT (Reuters) – German car parts supplier Continental said on Friday it expects energy, logistics and materials cost to rise by 3.5 billion euros ($3.7 billion) this year due to COVID-19 and the Ukraine war, and is in talks with customers to increase prices.

Raw material markets and supply chains have been tight for months due to the pandemic and the situation deteriorated further due to sanctions imposed on Russia after its invasion of Ukraine, Chief Executive Nikolai Setzer told shareholders.

He added that lockdowns in China due to the most recent pandemic wave have blocked supply chains even more.

“If the geopolitical situation in Eastern Europe remains tense or worsens, this may cause further lasting disruptions to production, supply chains and demand,” Setzer said at the company’s annual general meeting.

($1 = 0.9459 euros)

(Reporting by Zuzanna Szymanska; Editing by Riham Alkousaa)

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