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After Tesla, Volvo Suspends Production in Belgium due to Red Sea Crisis


Sat 13 Jan 2024 | 12:20 AM
Taarek Refaat

Car manufacturer "Volvo" intends to suspend production at its factory in Belgium next week, after attacks on ships in the Red Sea disrupted the company's supply chain.

According to Bloomberg, Production at the plant in Ghent will be halted for three days after ships were forced to change course to avoid attacks in one of the world's busiest shipping lanes, delaying gearbox deliveries, a spokeswoman said in an email on Friday.

She added that the company does not believe that the disruptions will affect its ability to reach global wholesale or production goals.

Many companies have been forced to divert ships away from the Red Sea amid attacks by the Iran-backed Houthis, who have said they will not back down until Israel stops its war in Gaza. The conflict escalated early Friday amid 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 due to the unrest.