European Companies Monitoring Supply Chains After Red Sea Attacks -- At a Glance
January 12 2024 - 11:01AM
Dow Jones News
After a series of attacks on cargo ships in the Red Sea, most
shipping companies have rerouted ships, resulting in disruptions in
trade flows and delivery.
As a result of gaps in its supply chain, U.S. car maker Tesla
reported earlier Friday that it would stop production at its German
factory near Berlin for a two-week period starting Jan. 29.
A number of companies including car makers Renault and
Mercedes-Benz, fashion company H&M and chip manufacturer
Infineon said they are monitoring the situation, while other
companies provided further information regarding the
disruption:
-- Siemens: The German technology conglomerate said it is seeing
some restriction in its supply chains and is working with suppliers
on alternatives to cope with potential bottlenecks.
--Volvo Cars: The Swedish-Chinese car maker said it would pause
production at a Belgium factory because of supply-chain delays
caused by the conflict in the Red Sea. The company said it would
stop production at its Ghent plant for three days due to a delayed
delivery of gearboxes. "However, as of now, we see no impact on our
ability to reach global retail sales deliveries or production
plans," a spokesperson said.
-- Volkswagen: The German auto manufacturer's namesake brand
doesn't envision any major production restrictions as a result of
the Red Sea situation. "Volkswagen is in close coordination with
the shipping companies and is monitoring the situation closely in
order to assess the impact on production and market supply and--as
far as possible--avoid it," a spokesman said, adding that rerouting
shipments ensures that freight reaches its destination despite a
slight delay.
-- Continental: The German auto parts maker said it has been
affected and is monitoring the situation with its suppliers. "We
are currently compensating for delivery delays by using alternative
supply sources, transportation options as well as our inventory," a
spokesman said.
-- Stellantis: The Netherlands-based Jeep and Dodge maker said
it has used planes to transport supplies on a limited basis to
compensate for shipping delays, and that effects on its
manufacturing abilities have been nearly non-existent.
Write to Barcelona editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
January 12, 2024 11:46 ET (16:46 GMT)
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