Volvo To Halt Car Production In China And Us In March Due To Chip Shortage

Volvo Cars will temporarily be halting or adjusting its production in China and therefore the US. The primary reason for this move is due to the company being affected by the chip shortage issue that has affected various industries across the world.

According to a News report, the carmaker made the announcement of adjusting or halting production earlier in the week for China and therefore the US. As per the official statement, “We expect things to become critical during the second quarter and have therefore decided to require measures to reduce the impact on production while working daily to improve the situation. Volvo Cars will temporarily stop or adjust production in a number of its car factories (in the US and China) during the month of March.”

The company further added that it’s yet to be affected or lose volumes thanks to the worldwide chip shortage. Although, it said that there was a “big risk,” which could hit during the primary quarter of this year. Notably, the shortages in semiconductors have affected the car industry, with various car makers competing with the buyer electronic industry for chip supplies.

Previously, we had reported on the impact the chip supply issue would have on the automobile industry. Similarly, Germany has also urged Taiwan for help over its own automobile production issues due to semiconductor shortages. The issue is expected to persist this year.


Samsung, the world’s biggest computer-chip manufacturer, has warned of a “serious imbalance” within the semiconductor industry, as global shortages cause disruption.

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