Chip shortage urges production suspension at Volvo Cars in Gothenburg


Inside view of the Volvo Cars plant in Gothenburg, Sweden, April 17, 2020. (AdamIhse / TT News Agency / via Reuters / File photo)

Stockholm — Volvo Cars, owned by Geely Holding Group of China, has announced that it will temporarily suspend production at its Swedish plant in Gothenburg due to a shortage of semiconductor chips.

Global chip shortages are hitting manufacturing, automakers are cutting production, and electronics makers are struggling to keep up with the pandemic-induced surge in demand for phones, televisions and game consoles.

“Production in Torslanda will be temporarily suspended from tonight due to a shortage of materials related to semiconductor issues,” Volvo Cars said in an email statement.

A Swedish carmaker stopped production at its Belgian plant in Ghent for a week in June, but said it would “restart production as soon as possible by next week at the latest.”

Volvo Cars, which reported a return to profitability in the first half of the year due to increased demand for electric vehicles, is considering listing on the Nasdaq Stockholm Stock Exchange this year.