Chip Shortage Prompts Production Halt At Volvo Cars In Gothenburg
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Volvo Cars, owned by China’s Geely Holding, will temporarily stop production at its Swedish plant in Gothenburg due to the shortage of semiconductor chips, it said on Wednesday. A global chip shortage has hit manufacturing, with automakers cutting down on production and electronic device makers struggling to keep up with a pandemic-led surge in demand for phones, TVs and gaming consoles.
“Production at Torslanda will be paused temporarily from this evening due to a material shortage linked with the semiconductor issue,” Volvo Cars said in an emailed statement.
“Production will restart as soon as possible, at the latest before next week,” the Swedish carmaker, which in June halted production at its Belgian plant in Ghent for a week, said.
Volvo Cars, which last month reported a return to profit in the first half as demand for electric cars grows, is considering listing on the Nasdaq Stockholm stock exchange this year.
Questions & Answers
Q.Which Volvo Cars plant is being affected by the semiconductor shortage?
Which Volvo Cars plant is being affected by the semiconductor shortage?
Production is being temporarily stopped at the company's Swedish plant in Gothenburg. This facility, known as Torslanda, will pause operations due to a material shortage linked to the global semiconductor issue.
Q.When is production expected to resume at the Gothenburg plant?
When is production expected to resume at the Gothenburg plant?
Production is set to restart as soon as possible. Volvo Cars has stated that operations will definitely resume before the end of next week, following the temporary pause starting this evening.
Q.Has Volvo Cars experienced similar production issues recently?
Has Volvo Cars experienced similar production issues recently?
Yes, Volvo Cars previously halted production at its Belgian plant in Ghent. That stoppage occurred in June and lasted for one week, also likely due to related supply chain challenges.
Q.What is the reason behind this production halt?
What is the reason behind this production halt?
The temporary stop in production is due to a material shortage. This shortage is specifically linked to the ongoing global issue with the supply of semiconductor chips, which affects many manufacturers.
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