China’s Volvo Cars stop production citing chip shortage

China’s Geely Holding-owned Volvo Cars will temporarily stop production at its Swedish plant in Gothenburg because of a shortage of semiconductors.

A global crunch of chips has hit carmakers hard, with many forced to cut down on production. Electronic device makers are also struggling to keep up with a pandemic-led demand for gaming consoles, phones, and television sets.

“Production at Torslanda will be paused temporarily from this evening due to a material shortage linked with the semiconductor issue,” said Volvo Cars. “Production will restart as soon as possible, at the latest before next week”. Last month, Volvo Cars reported a return to profit in the first half of this year. It plans for a market debut on the Nasdaq Stockholm stock exchange later this year.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s