Tesla And Volvo Suspend European Car Production

Tesla and Volvo announced the suspension of their assembly lines in Europe due to disruptions in supply chains caused by attacks in the Red Sea, Melissa Eddy reported for the New York Times.

Volvo, majority-owned by the Chinese automaker Geely, is also halting production at its plant in Ghent, Belgium, for three days due to delayed delivery of gearboxes caused by adjusted sea routes. I Photo: Volvo Car Nederland

Yemeni rebel group Houthis, backed by Iran, has targeted ships in the Red Sea, forcing cargo ships to take longer routes.

The conflicts in the Red Sea have impacted production in Grünheide, Germany, where Tesla's plant is located.

The company stated that the armed conflicts and shifts in transport routes have affected their operations. Production at Tesla's factory outside of Berlin is set to be suspended from January 29 to February 11.

Volvo, majority-owned by the Chinese automaker Geely, is also halting production at its plant in Ghent, Belgium, for three days due to delayed delivery of gearboxes caused by adjusted sea routes.

Shippers now face the dilemma of navigating through the risky Red Sea or taking the longer route around Africa, adding significant time and cost to transportation. The disruptions in supply chains are creating gaps, affecting production schedules for electric vehicle makers like Tesla and traditional automakers like Volvo.

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