Volvo Cars Cut Sales Forecast Due To Chip Shortage

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Volvo Cars could cut its forecast for vehicle delivery in 2022. This is due to the shortage of chips which the company expects to continue into the second quarter.

According to a company’s spokesperson, Volvo was forced to cut eight shifts at its largest plant because of the semiconductor shortage.

The company canceled three shifts at its Torslanda factory, near Gothenburg, between March 27-28 and five shifts between March 31 and April 1.

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

The company noted that the challenges it is facing were not related to the ongoing war in Ukraine. However, the war had led to an increase in the cost of raw materials, energy, and freight.

Several companies have continued to struggle with meeting chip demands for their products. The issue which started during the pandemic is expected to continue through 2022.

For more information, read the original story in Reuters.

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