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.