Red sea disruptions: Suzuki halts Hungary production for a week

On Tuesday, the Japanese automaker Suzuki Motor Corp. revealed that it has temporarily halted production at its plant in Hungary for a week due to disruptions in the supply chain caused by Houthi attacks on ships in the Red Sea.

The manufacturing facility, located in the northern Hungarian city of Esztergom, plans to resume manufacturing from Jan 22.

The pause was attributed to the delays in the shipment of Japanese-made engines.
Suzuki’s Hungarian plant manufactures two SUV models, its Vitara model, branded the Escudo in Japan, and the S-Cross.

The production halt from Jan. 15-21 comes after automakers Tesla (TSLA.O) and Geely-owned Volvo Car (VOLCARb.ST) announced suspensions in Europe in the second half of last week, in a sign that attacks on shipping in the Red Sea are hitting manufacturers in the region.

Houthi rebels from Yemen have been targeting commercial ships affiliated with Israeli companies or perceived to be linked to Israel in response to Israel’s ongoing actions in the Gaza Strip. In retaliation against the Houthi attacks, U.S. and British forces have conducted strikes on targets in Yemen used by the Iranian-backed group. However, the militants have persisted in carrying out further assaults on vessels in the area.

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