Volvo Cars slashes sales forecast due to chip shortage

Volvo Cars said a shortage of semi-conductors would be hitting production, forcing it to cut its forecast for vehicle deliveries for 2022.
Volvo in deal with Infosys“Volvo Cars’ expectation has been to grow its sales volumes for 2022,” the company said in a statement. “The disturbance means the company now expects marginal growth in deliveries for the full year 2022, compared to 2021.”

Volvo, majority owned by China’s Geely Holding, said the war in Ukraine had resulted in increasing costs for raw material, energy and freight.

“Volvo Cars continue to work with pricing to mitigate the effects,” it said.

A global semiconductor chip shortage has slowed car makers’ production lines despite recovery from the effects of the pandemic.

In February, Volvo said supply chain bottlenecks would remain a restraining factor, while the component shortage would only gradually improve.