Volkswagen is warning customers that price increases are on the way due to the Iran war, in comments made to German car industry publication Automobilwoche.
The effects of Iran's blockade of the Strait of Hormuz in response to US and Israeli attacks are already visible worldwide on fuel prices at filling stations, Karsten Schnake, Volkswagen's head of procurement, said in an interview published on Wednesday.
However their impact on the manufacturing sector is likely to be felt at the end of the year. Should the conflict continue for longer, end customers could also feel the impact, he said.
"If there is a solution by the middle of the year, we can cushion the effects," Schnake said. "If the war drags on longer, we will face effects that are too large and a steep jump in costs."
He said it was not yet possible to estimate the details, as the issue was too complex. Volkswagen would endeavour to keep the impact to a minimum "in order to burden our customers as little as possible," Schnake said. "It is enough that they experience it every day at the petrol station," he added.
Groceries, medical devices and flights are among the other items likely to become more expensive, analysts forecast, as curbs on shipping continue through the trade lynchpin Strait of Hormuz and the US and Iran struggle to agree to a long-term ceasefire.
