Volvo Cars Cut Sales Forecast Due To Chip Shortage

Share post:

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.

Featured Tech Jobs

SUBSCRIBE NOW

Related articles

Apple reduces forecasts for Vision Pro as demand cools in key US market

In an unexpected shift, Apple has drastically reduced its shipment forecasts for the upcoming Vision Pro, indicating a...

FTC says Microsoft’s layoffs at Activision Blizzard may threaten merger approval

The FTC has expressed dissatisfaction with Microsoft's layoffs at Activision Blizzard, challenging the integrity of the Microsoft-Activision deal....

Delaware court voids Musks $56 billion dollar compensation

Tesla's stock experienced a notable downturn following a Delaware court's decision to void CEO Elon Musk's massive $56...

IT World Canada strikes partnership with Canadian Cybersecurity Network

Goal is to make it easier for infosec pros to access each organization

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways