BERLIN (AP) — Tesla says it’s temporarily halting most production at its German factory because of attacks in the Red Sea, a vital global shipping corridor.
It’s a fresh sign of how the hostilities in the Mideast are disrupting global manufacturing supply chains, with shipping companies reporting that they’re being forced to reroute vessels carrying goods and components on the longer route around the southern tip of Africa.
“The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also affecting production in Grünheide,” Tesla said.
“The significantly longer transport times create a gap in the supply chains.”
The U.S. led airstrikes on Thursday against Yemen’s Houthi rebels in response to their attacks on Red Sea shipping,
The factory in Grünheide, southeast of Berlin, is Tesla’s first in Europe.
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