Volvo Cars will temporarily be halting or adjusting its production in China and the US. The primary reason for this move is due to the company being affected by the chip shortage issue that has affected various industries across the globe.
According to a YahooNews report, the automobile maker made the announcement of adjusting or halting production earlier this week for China and the United States. As per the official statement, “We expect the situation to become critical during the second quarter and have therefore decided to take measures to minimize the impact on production while working daily to improve the situation. Volvo Cars will temporarily stop or adjust production in some of its car factories (in the United States and China) during the month of March.”
The company further added that it has yet to be affected or lose volumes due to the global chip shortage. Although, it said that there was a “big risk,” which could hit during the first quarter of this year. Notably, the shortages in semiconductors has affected the automobile industry, with various car makers competing with the consumer electronic industry for chip supplies.
Previously, we had reported on the impact the chip supply issue would have on the automobile industry. Similarly, Germany has also urged Taiwan for help over its own automobile production issues owing to semiconductor shortages. The issue is expected to persist this year, so stay tuned for more updates.
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