Volvo cuts 2022 forecast as semiconductor shortage bites production
By Jason Dunn2022-03-29T11:56:00
A shortage in the supply of semiconductors is forcing Volvo to halt certain assembly lines again this week as it attempts to rebuild stocks, leading to a revision of output this year
Between March 27-28, Volvo cancelled three shifts at its Torslanda factory near Gothenburg and will cancel five shifts between March 31 and April 1. The site is responsible for rolling out the XC90 and XC60 SUVs and V90 station wagon.
The specific semiconductor that Volvo is in need of controls a range of electronic functions in its models. It is using the pauses in production to rebuild its supply of the critical component.
Supply chain issues, including those related to Covid-19, are expected to be an ongoing problem for the industry throughout this year. Volvo Cars said it will work with suppliers and partners to resolve any disturbances to production.