After a positive economic and sales outlook for 2022, Volvo has scaled back its predicted sales numbers.
Volvo Group
Volvo Cars announced today it is experiencing a “temporary worsened production situation,” expected to last throughout the second quarter, due to a shortage of a specific semiconductor.
According to a company statement, the automaker had seen a gradual month-over-month-improvement in the supply of semiconductors and production output. Now, however, Volvo Cars now expects a temporary deviation from that trend.
The supply “disturbance” means Volvo Cars now expects marginal growth in sales volumes for the full year 2022, compared to 2021.
Volvo’s expected production disruption is not related to the war in Ukraine as the automaker “has very limited direct relationships with suppliers in Ukraine, ” according to the company statement.
Volvo leadership expects supply chain constraints, including the ongoing impacts from Covid, will remain a problem for the industry throughout 2022.
Cindy Brauer
Former Managing Editor
Cindy Brauer is a former managing editor for Bobit Business Media’s AutoGroup. A native of Chicago but resident of Southern California since her teens, Brauer studied journalism and earned a communications degree at California State University Fullerton. Over her career, she has written and edited content for a variety of publishing venues in a disparate range of fields.
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