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Inside the Tesla car production line (archive)
Saturday, January 13, 2024 / 09:56
Electric car maker Tesla said it will halt most of its production at its European factory near the German capital Berlin for two weeks due to a shortage of components due to a delivery delay caused by Houthi attacks in the Red Sea.
“The significant increase in transport times is creating a gap in supply chains,” Tesla said, as Iran-backed rebels increasingly threaten ships in the crucial waterway.
The American company added that production at the “Gigafactory” factory southeast of Berlin would be stopped “except for some areas” between January 29th and February 11th.
Tesla confirmed that “production will fully resume starting February 12.”
An American attack on a Houthi radar facility
— 24.ae (@20fourMedia) January 13, 2024
For its part, Volvo announced on Friday that its factory in the Belgian city of Ghent will remain closed for three days next week due to a shortage of transmission equipment due to delivery delays caused by changes in shipping routes.
The factory produces the XC40 four-wheel drive models and the C40 electric cars.
#Infograph24| Suez Canal revenues decline due to Houthi attacks pic.twitter.com/iiZNLkwiRT
— 24.ae (@20fourMedia) January 12, 2024
Tesla noted that “armed conflicts in the Red Sea and the shifting transport routes between Europe and Asia via the Cape of Good Hope are also impacting production in Grünheide,” the city south of Berlin where Tesla has its only European factory opened.
This security crisis is causing disruptions in global maritime trade. In addition to extending the travel time between Asia and Europe by 10 to 20 days, changing the route incurs huge costs for companies.
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