The crisis in the Red Sea is taking its toll on the automobile sector, the consequences of which will soon be felt in the pockets of the population. There are already problems in receiving parts in different brands with factories in Europe. Among them, the car manufacturer Suzuki, as well as Tesla and Volvo Car, have decided to suspend their production for a week due to supply chain disruptions caused by attacks by Yemen’s Houthi rebels on ships in the Red Sea.

Specifically, the Houthi rebels have been carrying out attacks on commercial ships owned by Israeli companies or believed to be linked to Israel, and these companies have suffered from the offensives with delays in the delivery of engines and other parts, as well as shortages of the themselves. The truth is the biggest supply chain disruption since the COVID-19 pandemic could derail the global economic recovery, while higher freight and oil prices could reignite inflation.

The canal accounts for approximately 15% of global container traffic. “Armed conflicts in the Red Sea and associated changes in shipping routes between Europe and Asia are impacting production,” Tesla said in a statement, adding that “Longer transportation times are creating a gap in supply chains“. Therefore, many companies, including Geely, the Swedish furniture company IKEA or the British retailer Next, among others, have also warned of possible delays in deliveries of goods.

Some problems that are reaching Spain. The Michelin factory in Vitoria-Gasteiz will carry out between January 13 and 14 the first of the two production stoppages announced due to the lack of rubber resulting from the problems in the Red Sea. To these stoppages, which according to union estimates will affect around 920 workers, are added those announced for the same reason for the weekend of January 20 and 21. This crisis situation in the Red Sea has generated, in the specific case of Michelin, a lack of rubber, an essential raw material for the manufacture of tires.

In addition to logistical problems hampering trade, low water levels due to drought have reduced crossings of the Panama Canal, another key maritime trade route. That’s why shipping giants like Maersk and Hapag-Lloyd have been sending their ships on longer, more expensive voyages around Africa. Last Friday, Maersk noted that the route change adds approximately ten days and about a million dollars in additional fuel to a trip, and could be maintained for a long time.

Companies like Stellantis say that, for the moment, they have suffered “almost no impact” on manufacturing and have used air transport in limited cases. In the same way, BMW, Volkswagen and Renault said a few days ago that production has not been affected. But EU carmakers rely heavily on Asia for electric vehicle supplies. The region accounted for 67% of EU imports of electric vehicle battery components in the 12 months to September 30 and just over two-thirds of lithium-ion battery shipments.