STOCKHOLM: Volvo Cars, owned by China's Geely Holding , will halt production at its Swedish plant in Torslanda, on the outskirts of Gothenburg, during next week due to the shortage of semiconductor chips, it said on Monday.
A global chip shortage over the past year has caused a major delay in manufacturing activity and forced several automakers to cut down on production.a
"Due to the current material shortage situation, triggered 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," Volvo Cars said in an e-mailed statement.
"Production is planned to resume on Sunday, Sep 5," the Swedish firm, which had a similar interruption of output at its Gothenburg plant only two weeks ago, added.
Volvo Cars, which last month reported a return to profit in the first half as demand for electric cars grew, is considering listing on the Nasdaq Stockholm stock exchange this year