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Volvo Cars cuts 2022 sales volume forecast due to chip shortage

Volvo Cars cuts 2022 sales volume forecast due to chip shortage
Volvo Cars cuts 2022 sales volume forecast due to chip shortage   -   Copyright  Thomson Reuters 2022
By Reuters

STOCKHOLM – Volvo Cars said on Tuesday that a shortage of semi-conductors was hitting production and would likely to continue through the second quarter, forcing it to cut its forecast for vehicle deliveries for the full year.

“Volvo Cars’ expectation has been to grow its sales volumes for the full year 2022,” the company said in a statement. “The disturbance means the company now expects marginal growth in deliveries for the full year 2022, compared to 2021.”

Volvo, majority owned by China’s Geely Holding, said the problems were not related to the war in Ukraine, but that fighting there had resulted in increasing costs for raw material, energy and freight.

“Volvo Cars continue to work with pricing to mitigate the effects,” it said.

A global semiconductor chip shortage has slowed car makers’ production lines despite recovery from the effects of the pandemic.

In February, Volvo said supply chain bottlenecks would remain a restraining factor, while the component shortage would only gradually improve.