Volvo cites semiconductor supply shortfall

The Volvo Group said its global truck production in the second quarter is being significantly impacted by a global shortage of semiconductors.

The Volvo Group announced that a global shortage of semiconductors will have a substantial impact on the group’s production in the second quarter.

In the beginning of the quarter, the Volvo Group said it will implement stop days across its global truck manufacturing operations. In total, these are currently estimated to between two and four weeks depending on production site. In addition, disturbances are also expected to impact the Group’s other business areas.

Visibility into the global supply chain of semiconductors as well as other components is currently very low and the uncertainty about the development is high.

The disturbances are expected to have a negative impact on earnings and cash flow. The Volvo Group and its business partners are working hard to minimize the number of vehicles affected and the impact on customers by keeping flexibility to be able to increase production when possible.