Suzuki Halts Production at Hungarian Factory Due to Red Sea Crisis

Japanese company Suzuki announced on Monday that its production plant in Hungary will not manufacture the Vitara and S-Cross models from January 15 to 21.

The production halt is due to the delay in the arrival of Japanese-made engines amid attacks on commercial ships in the Red Sea.

The factory, located in Esztergom, northern Hungary, plans to resume production on January 22.

Suzuki joins other companies that have announced production halts due to the tensions in the Red Sea, which have disrupted trade.

Electric car manufacturer Tesla announced last week that it would suspend most of its production for two weeks at its European factory near the German capital, Berlin, due to component shortages caused by delays in deliveries resulting from Houthi attacks in the Red Sea.

Tesla confirmed that "full production will resume as of February 12."

On the other hand, Volvo announced on Friday that its factory in Ghent, Belgium, would close for three days this week due to a shortage of transmission components caused by changes in shipping routes.

The factory produces XC40 SUVs and electric cars.

Since the start of the conflict between Israel and the Palestinian Hamas movement in Gaza, the increasing attacks near the strategic Bab el-Mandeb Strait, which separates the Arabian Peninsula from Africa, have led some shipping companies to divert through the Cape of Good Hope.

This security crisis has disrupted global maritime trade, extending transit times between Asia and Europe by 10 to 20 days and incurring significant costs for companies adjusting their routes.