European Autos, Heavily Reliant On Asian Components, Need Quick End To Suez Blockage

European Autos, Heavily Reliant On Asian Components, Need Quick End To Suez Blockage

Share to Linkedin STUCK SHIP EVER GIVEN, SUEZ CANAL -- MARCH 26, 2021: Maxars WorldView-2 collected new ... [+] high-resolution satellite imagery of the Suez canal and the container ship (EVER GIVEN) that remains stuck in the canal north of the city of Suez, Egypt. Please use: Satellite image (c) 2020 Maxar Technologies. The European auto industry in general and Italy, Spain and Turkey's in particular look vulnerable to any extended delay in shipping through the Suez canal after it was blocked March 23 when the container ship Ever Given ran aground, according to Fitch Solutions. A long delay will add more pressure on European automakers, highly dependent on a supply of crucial components from Asia, and still trying to recover from the coronavirus lockdowns and currently reeling from a semiconductor shortage, Fitch Solutions said in a report. Production cutbacks can be expected within a week of the blockage, while yet another supply chain mess is likely to increase so-called "near-shoring". Efforts to refloat the ship are gathering pace, but currently don't appear to be close to succeeding. "We believe this blockage at the Suez Canal will add even more pressure to the Autos industry, which is already facing multiple