Home Automobile The crisis in the Red Sea: how will it affect the automotive industry? Auto Plus news in your smartphone Auto Plus news in your inbox

The crisis in the Red Sea: how will it affect the automotive industry? Auto Plus news in your smartphone Auto Plus news in your inbox

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The crisis in the Red Sea: how will it affect the automotive industry?  Auto Plus news in your smartphone Auto Plus news in your inbox

THE supply issues for car manufacturers in Europe. Under the question of attacks on Houthi rebels Yemen against ships in Red Sea, which seriously disrupt the supply of parts and raw materials to European factories.

Part of sea transportation must be directed through the Cape of Good Hope, which will lead to delivery delays and even temporary interruptions in the work of industrial facilities.

You are here last Thursday already announced a two-week suspension of production at its plant in Berlin Volvo also affects

Volvo was also affected by the Red Sea unrest

Disruptions in the strategic Bab el-Mandeb Canal, located further south of the Suez Canal, led to the Swedish automaker Volvo to temporarily stop production at its Belgian plant Gent. Production has been halted since Monday and should resume Thursday, a company representative announced.

As a direct consequence of the attacks in the Red Sea, shipping gearboxes suffers delays. Boats must be diverted, causing a temporary interruption in the supply of components needed for production.

According to the spokesman, the production stoppage should not have any impact on deliveries to customers. The company’s production targets will also not be affected by this hiatus.

Tesla halts production in Grünheide for two weeks

Already last Thursday, the American giant Tesla has announced the cessation of most of its production in his European plant located during Berlin fortnight.

The Berlin Gigafactory must stop January 29 – February 11, “with the exception of a few sub-sectors”. Indeed, the modification of transport routes led to a supply chain disruption.

We will remind you that at the Tesla plant in Germany, which has been operating since 2022, it is working close 11,500 workers and currently produces more than 250,000 electric cars per year, with a long-term goal of 500,000 units. Tesla plans to expand the factory to double its production capacity, as well as the number of employees.

The strait in the Red Sea is strategic

Since the start of the war between Israel and the Islamist movement Hamas, Yemen’s Houthi rebels have regularly attacked ships in the Red Sea suspected of having ties to Israel. already 27 attacks of this type have taken place so far.

The Suez Canal, which connects the Mediterranean Sea with the Red Sea and is the shortest sea route between Asia and Europeincreasingly shunned by shipping companies because of the significant danger it poses.

An alternative way to Cape of Good Hope still viable means a much longer way to go. In addition, a extension of the trip from 10 to 20 dayssignificant costs are important for business.

Read also:

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Author: Pierre Horney
Source: Auto Plus

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