The Red Sea conflict has already had an impact on global supply chains. It has also affected the automobile sector. Due to the shortage of materials, the car manufacturer company Tesla has announced to the stop production this time. News Nikkei Asia.
The two companies said that due to the shortage of necessary raw materials, the two companies have stopped production in some factories in Europe.
In a statement, Tesla said armed conflicts in the Red Sea and transporting goods through the Cape of Good Hope could affect global production. Longer transport times are making a difference in the supply chain.
Referring to the shortage of raw materials, Tesla recently announced that the production of cars will be stopped at its factory near Berlin from January 29 to February 11.
Volvo Cars said production at its plant in Ghent, Belgium, will be halted for three days next week due to delayed deliveries of gearboxes.