Reuters. – Volvo Cars Inc said on Tuesday that shortfalls in semiconductors are affecting production and the problem is likely to persist into the second quarter, forcing it to lower its full-year auto delivery forecast.
“Volvo Cars’ forecast was to increase its sales volume for the full year of 2022,” the company said in a statement. “The disruption means the company now expects marginal growth in deliveries for the whole of 2022, compared to 2021.”
Volvo, which is majority-owned by China’s Geely Holdings, said the problems were not related to the war in Ukraine, but noted that the fighting in the country had caused soaring costs for raw materials, energy and transportation.
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A global shortage of semiconductor chips has slowed production lines at automakers, despite recovering from the effects of the pandemic.
In February, Volvo said bottlenecks in the supply chain would remain a limiting factor and component shortages would only gradually improve.
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