Volvo halts production at Swedish plant on chips shortage

Automotive Industry

Source: Automotive News Europe, 2021-08-11

Volvo Cars will temporarily stop production at its Swedish plant near Gothenburg due to the shortage of semiconductor chips.

"Production at Torslanda will be paused temporarily from 11 August evening due to a material shortage linked with the semiconductor issue," Volvo said in an emailed statement on 11 August.

The automaker said output will restart "as soon as possible, at the latest before next week."

In June, Volvo halted production at its factory in Ghent, Belgium, for a week.

A global chip shortage has hit manufacturing, with automakers cutting down on production and electronic device makers struggling to keep up with a pandemic-led surge in demand for phones, TVs and gaming consoles.

Volvo in July 2021 reported a return to profit in the first half as demand for electric and plug-in hybrid cars grows.

The company, which is owned by China's Geely Holding, is considering listing on the Nasdaq Stockholm stock exchange in 2021.

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