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Volvo Cars cuts 2022 sales volume forecast due to chip shortage -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A Volvo dealer employee is seen wearing a mask in the showroom in Brussels, Belgium on May 28, 2020. REUTERS/Yves Herman

STOCKHOLM, (Reuters) – Volvo Cars stated Tuesday that a shortage in semi-conductors is affecting production. This will likely continue into the second quarter. It has had to reduce its projections for vehicle deliveries for this year.

Volvo Cars expected to see an increase in sales for the whole of 2022,” said the company. The company expects a marginal increase in delivery for the entire year 2022 due to the disruption, as compared with 2021.

Volvo is majority-owned by China’s Geely Holding.

Volvo Cars will continue to use pricing to reduce the effect,” it stated.

The pandemic caused a shortage of semiconductor chips worldwide, which has led to a slowdown in production for car manufacturers.

Volvo stated in February that supply chain bottlenecks will remain a constraining factor while component shortages will improve gradually.

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