Transportation
VW Steers Clear of Red Sea Disruption by Rerouting Parts Supply
- Carmaker in December decided to ship parts around Africa
- Volvo, Tesla have had to reduce output on longer shipping time
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Volkswagen AG is avoiding production woes faced by Tesla Inc. and Volvo Car AB by redirecting ships quickly after the Red Sea crisis erupted last month, ensuring a steady supply of parts despite the escalating hostilities.
The German carmaker began rerouting shipments of car parts around South Africa instead of through the Suez Canal last month, according to a spokesperson. The move added two weeks to delivery times, the company said, which the Europe’s biggest carmaker incorporated into the production schedules.