Volvo Cars to halt production at Swedish plant due to chip shortage

Volvo Cars will halt production at its Swedish plant in Torslanda by next week due to the continued shortage of semiconductor chips.

“Due to the current material shortage situation, caused by a combination of global semiconductor shortages and new Covid-19 outbreaks, Volvo Cars has decided to pause production in Torslanda for the week of Aug 30-Sep 3,” the automaker said.

“Production is planned to restart on Sunday, Sep 5,” it added.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.