Volvo Cars, owned by China's Geely Holding, has announced a temporary shutdown of its factory in Sweden due to a shortage of semiconductor chips. The company that produced the XC90, XC60, V90 and other models ceased to work.
This is not the first time a global chip shortage is causing disruptions to automakers, as well as other companies trying to cope with the surge in demand for smartphones, TVs, game consoles, video cards and any other hardware and electronics that use semiconductor solutions.
“Production at Volvo Torslanda will be suspended from this evening due to material shortages related to semiconductor problems ,” Volvo officials said yesterday. The company's management promises to resume production of cars next week. In June, the company had already stopped production for a week at its Belgian plant in Ghent.
Volvo Cars, which only returned to profitability in the first half of the year due to increased demand for electric vehicles, is considering a public listing on Nasdaq Stockholm later this year, so such supply disruptions are especially painful for it.
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