Volvo on Friday announced production delays due to attacks in the Red Sea by Yemen’s Houthis on foreign transport ships, joining Tesla and other primary corporations facing disruptions, as the situation worsens following U. S. and British airstrikes opposed to the organization on Thursday.
Volvo will halt production at its Belgian plant for three days, after ships with gearboxes had to be diverted to violence, according to Bloomberg.
A Volvo spokesperson told Forbes that the company doesn’t expect the delay to impact its ability to “achieve global retail deliveries or production plans this year. “
Tesla will halt most of its production at its factory near Berlin from Jan. 29 to Feb. 11, Reuters reported on Friday, making it the latest of several primary corporations — in addition to Abercrombie, Ikea, Electrolux, BP and Crocs — that also experienced disruptions due to the attacks. Array
Tesla did not respond to Forbes’ requests for comment.
More than 50. That’s how many countries have been affected by the Houthis’ 27 attacks, which have caused more than 2,000 ships to divert to avoid the area, President Joe Biden said Thursday.
About 17,000 ships, or 10% of global trade, pass through the Red Sea each year, according to International Trade magazine. The conflict, which escalated on Thursday with U. S. and British airstrikes on Houthi targets in Yemen, began after the start of the war. The Houthis, an Iranian-backed organization, ignored a Jan. 3 warning from the U. S. and its allies calling for an early end to the attacks. The Houthi leader reportedly said Thursday that any military reaction to the attacks would be “superior” to an attack carried out by the organization earlier this week, according to Bloomberg.
U. S. Launches Measures Opposed to Houthi Goals in Yemen (Forbes)
How Houthi Red Sea Attacks Are Disrupting World Trade (Bloomberg)
These face production delays due to Red Sea Houthi attacks: Ikea, Danone and more (Forbes)