Suzuki Halts Production at Hungarian Plant Due to Houthi Attacks in the Red Sea

Carmaker Suzuki is temporarily suspending operations at its car assembly plant in Hungary for a week due to logistical disruptions stemming from the situation in the Red Sea. This information was reported by the Japan Broadcasting Corporation.

The production pause at the automotive assembly plant is scheduled from January 15 to January 21. Following this period, Suzuki plans to resume plant operations, anticipating the arrival of components necessary for the manufacturer's production in Hungary by the next Monday.

It is noted that the reason for this decision was problems with the supply of parts made in Japan, including engines. This is due to the actions of the Yemeni Houthis, who, after the start of Israel's military operation in the Gaza Strip, began attacking transport vessels sailing through one of the world's most important trade routes — the Red Sea and the Suez Canal.

It is noteworthy that Suzuki's plant in Hungary produced 142,000 vehicles last year, including models such as Vitara and S-Cross crossovers.

Meanwhile, other Japanese carmakers, Toyota and Nissan, with plants in Europe, currently have no plans to suspend operations in the region. They assert that they are utilizing safer routes to obtain components.

The Gaze publication also reported that Tesla, the electric vehicle manufacturer, will suspend production of most of its vehicles at the German factory near Berlin from January 29 to February 11 due to Houthi attacks in the Red Sea. The American electric car maker became the first company to announce a production pause due to disruptions related to events in the Red Sea. The company also noted that armed conflicts in the Red Sea and associated changes in transportation routes between Europe and Asia via the Cape of Good Hope are affecting production in the Grünheide community in Brandenburg.

Many companies, including China's second-largest carmaker, Geely, and the Swedish furniture manufacturing company Ikea, have also warned of possible delivery delays.

Major shipping companies such as Maersk and Hapag-Lloyd are forced to choose longer and more expensive routes around the Cape of Good Hope, adding approximately 10 days to the journey from Asia to Northern Europe and increasing fuel costs by almost a million dollars (910,000 euros). This impact extends to global trade and container transportation.