Written by Anna Ringström and Marie Manns
STOCKHOLM (Reuters) – Volvo Cars, majority-owned by China’s Geely Automobile, said it will halt production at its Ghent plant in Belgium for three days next week due to delays caused by the security situation in the Red Sea. .
A spokesperson for the Sweden-based automaker said gearbox deliveries were delayed, making it the second company after Tesla to disclose production disruptions due to attacks on ships in the Red Sea.
Vehicle deliveries, production targets and the company’s other European plant in Gothenburg, Sweden, were not affected by the suspension, the spokesperson said.
Attacks by the Iranian-backed Houthi militants, who are allied with the Palestinian Islamist group Hamas in the fight against Israel in Gaza, have disrupted one of the world’s most important shipping routes, forcing container ships to sail through southern Africa. They were forced to bypass the Suez Canal via the Suez Canal.
This adds about 10 days and $1 million in fuel costs to the journey from Asia to Europe.
(Reporting by Anna Ringström; Editing by Terje Solsvik and Elaine Hardcastle)
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