Published in Transportation

Volvo still badly hit by chip shortage

by on30 November 2021

Will continue until next year

Volvo Cars warned that the sector-wide semiconductor shortage would continue into next year, as its first quarterly report since listing on the stock market a month ago confirmed a dip in revenue and profit.

The Gothenburg-based carmaker said supply chains were still constrained but while production remained lower than demand, it had "improved month by month" since September.

Chief Executive Hakan Samuelsson said that while the supply situation has improved going into the fourth quarter, he expected the industry-wide shortage of semi-conductors to remain a restraining factor.

The chip shortage has forced many automakers around the world, including Volvo, to cut production. Chief Financial Officer Bjorn Annwall said he expected that to be the major issue in the fourth quarter.

Volvo said preliminary sales volumes were around 52,000 cars in November, down year-on-year due to lower production and a build-up of in-transit inventory.

It saw a hird-quarter operating profit figure of $362.6 million with revenues down sevenper cent.

It also maintained its full-year outlook of sales volume and revenue growth with improved profitability to pre-pandemic levels.

The company has committed to becoming a purely electric carmaker by 2030.

Last modified on 30 November 2021
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