S&P Global Mobility snips over 5 mln vehicles off 2022-23 production outlook

March 16 (Reuters) - Auto forecaster S&P Global Mobility on Wednesday knocked off more than five million global light vehicles from its production forecast for 2022 and 2023, citing the disruption to the already strained automotive supply chain from the invasion of Ukraine.

S&P Global Mobility downgraded the global light vehicle production forecast by 2.6 million units for 2022 and 2023 each.

Automakers around the world are now expected to manufacture 81.6 million units this year and 88.5 million units for next year.

The agency cited issues related to the supply of Ukrainian neon gas, a key ingredient for chip making, Russian palladium and loss of Ukraine-sourced wiring harnesses, as constraints that are weighing on production levels post invasion.

“Our worst case contingency shows possible reductions up to 4 million units for this and next year,” said Mark Fulthorpe, S&P Global Mobility’s executive director for global production forecasting.

Meanwhile, German carmaker BMW flagged supply chain disruptions exacerbated by the Ukraine-Russia conflict and cut its car division’s 2022 profit margin forecast on Wednesday.

The Ukraine crisis and COVID-related disruptions in China have forced carmakers from Toyota Motor Corp to Tesla Inc to shutter plants and raise prices. Many warn of further changes if circumstances do not stabilize. (Reporting by Aishwarya Nair in Bengaluru; Editing by Shailesh Kuber)