Volvo Cars to pause production in Ghent due to Red Sea attacks
The Ghent plant of Swedish carmaker Volvo will stop production for three days next week due to supply problems caused by Houthi attacks on ships in the Red Sea.
Production will be halted on Monday, Tuesday and Wednesday because parts cannot be delivered in time, Barbara Blomme, spokeswoman for Volvo Car Gent, confirmed on Friday.
"We do not expect any impact on our ability to meet global sales or production plans"
Since the outbreak of the war between Israel and the extremist Palestinian organisation Hamas in the Gaza Strip, Houthi rebels in Yemen have been attacking ships in the Red Sea that they claim have links to Israel. As a result, more and more major shipping companies are avoiding the route.
Shipping routes have also had to be adjusted for parts deliveries to the Volvo Cars plant in Ghent. The carmaker does not expect the disruption to affect its production targets.
"As a global car manufacturer with hundreds of thousands of cars produced and sold annually, Volvo Cars may be affected by supply chain disruptions, including international shipping disruptions," Volvo Cars said on Friday.
"Due to adjusted sea routes, which have led to a delay in the delivery of gearboxes, we have decided to stop production at our Ghent plant for three days," the carmaker said. "We do not expect any impact on our ability to meet global sales or production plans."
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