The transportation crisis in the Red Sea due to the Houthi attacks on freighters impacts Tesla’s production. The electric car manufacturer will stop almost all production at its electric plant near Berlin between January 29 and February 11 due to a lack of components, something it attributes to problems in maritime routes as reported in a statement. .
“Armed conflicts in the Red Sea and the resulting changes in shipping routes between Europe and Asia via the Cape of Good Hope also have an impact on production in Grünheide (where the plant is located),” Tesla said. “Significantly longer transportation times are creating a gap in supply chains.” Changing routes adds at least 10 days to the trip and increases your fuel bill. That ends up disrupting their operations.
The company, which does not specify which components are missing, hopes to resume production on February 12. 11,500 people work at the plant, which will open in 2022, producing about 250,000 cars per year.
“Tesla relies heavily on China for battery components, which must be transported to Europe across the Red Sea, constantly putting production at risk,” Sam Fiorani of AutoForecast Solutions, which tracks sales, told Reuters. supply chains and automobile production. The route is the shortest from Asia and accounts for 12% of world trade traffic.
The American electric vehicle manufacturer thus joins Michelin, which last week announced a stoppage at its Spanish plants due to a lack of rubber. Analysts predict that more motor companies will have problems due to the conflict. Other companies such as Ikea or Geely have also reported delays in deliveries.
Tesla adds another problem in the Old Continent, while waging a labor dispute with the Swedish union IF Metall over the signing of the collective agreement, which has caused strikes by several unions throughout the Nordic region.
For the moment, the company led by Elon Musk rules out increasing production in its Chinese factory in Shanghai, which also manufactures for Europe, which in fact is preparing to close for a week for the local New Year.
