Volvo to temporarily halt production in China and US over chip shortage

Volvo Cars will temporarily stop or adjust production in China and the United States for some days in March due to a global shortage of semiconductor chips.

“We expect the situation to become critical during the second quarter and have therefore decided to take measures to minimize the impact on production while working daily to improve the situation,” Volvo Cars said.

“Volvo Cars will temporarily stop or adjust production in some of its car factories (in the United States and China) during the month of March,” it added.

The automaker said last month it had so far not lost volumes due to the chip shortage but added there was a “big risk” it could happen in the first quarter.

The shortage has hit automakers worldwide and stems from a number of factors.