Supply constraints forces Volvo Cars to reduce production
The Swedish carmaker says that it is experiencing a temporary worsened production situation –which expected to last throughout the second quarter – due to lack of a specific type of semiconductor.
The auto industry has been hit hard by the shortage of semiconductors and Volvo Cars is no exception. The company has previously stated that it is seeing a gradual improvement in the chip supply and production output month over month. However, due to this specific disturbance Volvo Cars now says that it expects a temporary deviation from that trend.
Volvo Cars’ expectation has been to grow its sales volumes for the full year 2022. This new disturbance means the company now expects marginal growth in sales volumes for the full year 2022, compared to 2021, a press release reads
The company says that it expects the supply chain constraints, including the ongoing impacts from Covid, to remain a problem for the industry throughout 2022. Volvo Cars says that it is working with suppliers and partners to resolve any disturbances to production.