Volvo, like Tesla, has halted EV production in Europe owing to the possibility of violence from Iran-backed Houthi militants assaulting commercial ships in the Red Sea.
According to Electrek, Tesla has paused production at its Berlin gigafactory for around two weeks, from January 29 to February 11, due to a shortage of components as a result of a Red Sea blockade.
According to Automotive News Europe, Tesla and Volvo are among numerous corporations who have had to divert ships away from the Red Sea due to the fear of an assault.
Volvo announced a three-day production pause at its Ghent, Belgium, plant after rerouting ships to prevent potential unrest. According to a Volvo spokeswoman, this has caused a delay in the supply of gearboxes. The Ghent facility now produces the completely electric XC40 and C40, with the EX30 EV joining the lineup next year. Production and deliveries from the company's second European facility in Gothenburg, Sweden, remain unaffected.
In retaliation to Israel's airstrikes on Gaza, the Iran-backed Houthis have proclaimed a blockade of the Bab al-Mandeb strait near Yemen - it's a tiny chokehold to the Red Sea and a control point for all transport between the Indian Ocean and the Mediterranean Sea via the Suez Canal. The organization has declared that it intends to strike any commercial ships passing through the strait into the Red Sea.
According to the BBC, the gang has used drones and ballistic missiles to target multiple commercial boats and seize what they claim is an Israeli cargo ship since October. Attacks in the Red Sea have increased 500% in the last month, with businesses now taking great precautions to minimize harm.
Global shipping corporations have been forced to detour or halt shipments in one of the world's busiest shipping corridors. It takes far longer to turn ships south to go around Africa than it does to pass through the Suez Canal. According to Reuters, rerouting adds 10 days and $1 million in fuel expenses to a route from Asia to Europe.
Volvo has stated that the disruption would not have an impact on its production objectives and that it does not foresee "significant" constraints as a result of the Red Sea blockade.
Meanwhile, tensions in Yemen are rising as a result of US and UK airstrikes on Houthi targets, according to Reuters.
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