The attacks by the Houthi militia on merchant ships in the Red Sea are also starting to have an impact on the automotive sector. After Tesla, Volvo Cars also announces the suspension of production at its plant in Belgium due to problems in the component supply chain.
The production stop in Ghent
The Ghent factory of the Swedish brand will block work for three days to prepare for delays in deliveries of some parts useful for assembling the cars. Following the raids by Yemeni militias, the routes of many merchant ships were revised, thus lengthening the travel times to the destination ports. At the Ghent plant, Volvo builds the XC40 and C40 models while from 2025 the lines of the new EX30 will also be added.
Not just Volvo
The Swedish car manufacturer's production stop follows what Tesla announced that it will stop work at the Gigafactory in Berlin, with an interruption in car assembly that will last from February 29th to 11th. According to Volvo, despite this disruption, there will be no real impact on production capacity planned for 2024. The Houthi militia has intensified attacks in recent days, saying they will not cease until Israel stops its offensive in Gaza. There is currently no indication that other brands may risk delays or closures due to problems in the Red Sea: Volkswagen has spoken on the issue, saying it is confident that there will be no supply chain problems.
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