Volvo sales fall 30% in September as chip crisis weighs

Automotive Industry

Source: Automotive News Europe, 2021-10-04

Volvo Car's monthly sales fell 30% to 47,223 in September, dented by the global component shortage, the automaker said in a statement.

The company warned in September that sales volumes in the second half of 2021 could fall year-on-year after production cuts due to material shortages.

"The decline was related to a shortage of components. This affected production although it picked up again late in the month," Volvo said in the statement, adding demand for its products remained strong.

European sales at the automaker, which intends to list on the Nasdaq Stockholm stock exchange in 2021, fell 42% while demand in the US dropped 9%.

A global chip shortage over the past year has caused a major delay in manufacturing activity and forced several automakers to scale back output.

Sources told Reuters in September that China's Geely Holding was in advanced discussions with banks to list Volvo in the coming weeks, aiming for a valuation of about $20bn.

Through September, Volvo sales rose 18% to 530,649.

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