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Tesla suspends production! Red Sea crisis leads to parts shortage

Karen 2024-01-18 09:56:39

Tesla suspends production! Red Sea crisis leads to parts shortage

Tesla recently announced that the Gigafactory in Berlin, Germany, will suspend most car production from January 29 to February 11 due to attacks on ships in the Red Sea that have led to changes in transportation routes and shortages in parts supply.

Tesla said that production at the Berlin Gigafactory will resume fully on February 12. But the company did not respond to details of which parts were in short supply or how it would resume production at that time.

Tesla said: "Armed conflicts in the Red Sea and related changes in shipping routes between Europe and Asia around the Cape of Good Hope have had an impact on production work at the Grünheide plant." "Longer shipping times have led to gaps in the supply chain." This time The disruption to production at the factory has put more pressure on Tesla.

According to Reuters, after Tesla announced that it would suspend most car production at its Berlin factory from January 29 to February 11, Volvo Cars said that due to supply chain delays caused by the Red Sea situation, the company's factory in Ghent, Belgium Production will be suspended for three days.

This is the second company after Tesla to disclose production interruptions due to the Red Sea conflict. A company spokesman said car deliveries, production targets and another European plant in Gothenburg, Sweden, were not affected by the production suspension.

Recently, Yemen's Houthi armed forces have frequently attacked passing ships in the Red Sea, triggering a crisis in the Red Sea waterways. Tesla became the first company to interrupt production due to the incident. The shutdown shows how far the crisis has hit Germany.

Other companies such as Geely and Sweden's IKEA have also warned of delivery delays. Attacks by Yemen's Houthi rebels have forced the world's major shipping companies to avoid the Suez Canal.

The Red Sea route is the fastest sea route from Asia to Europe, accounting for approximately 12% of global maritime transport volume. Shipping giants such as Maersk and Hapag-Lloyd have been diverting their ships from South Africa's Cape of Good Hope, making transit times longer and shipping more expensive.

Maersk recently stated that the diversion will continue for the foreseeable future. Vessels circumnavigating the Cape of Good Hope add about 10 days to the voyage from Asia to Northern Europe and use about $1 million more in fuel.

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