Red Sea disturbance hits Volvo

by times news cr

2024-01-12T15:24:08+00:00

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/ Volvo Cars intends to suspend production at its Belgian factory next week, after attacks on ships in the Red Sea disrupted the company’s supply chain.

A factory spokeswoman said in an email sent on Friday that the factory in the city of Ghent will stop production for three days after ships were forced to change their course to avoid disruptions in one of the busiest shipping lanes in the world, which led to delays in the delivery of cans. “gears”.

She added that the company does not see the disruptions having an impact on its ability to reach global wholesale or production goals, according to Bloomberg.

Many companies were forced to direct ships away from the Red Sea due to attacks launched by the Yemeni Houthi movement on marine tankers. The conflict escalated early Friday with US and British air strikes on Houthi targets in Yemen.

As a result, many shipping companies have redirected ships away from the Red Sea – which is connected to the Mediterranean via the Suez Canal – forcing ships to follow much longer routes around South Africa. Tesla previously told Reuters that it would suspend most production at its Model Y factory near Berlin from January 29 to February 11 in response to the unrest.

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