Volvo Group has warned that the global shortage of semiconductors will have a substantial impact on production in the second quarter. The Group is to implement stop days across its global truck manufacturing operations, which it currently estimates to total between two and four weeks depending on production site. In addition, disturbances are also expected to impact the Group’s other business areas.
In a statement Volvo said, “Visibility into the global supply chain of semiconductors as well as other components is currently very low and the uncertainty about the development is high.
“The disturbances are expected to have a negative impact on earnings and cash flow. The Volvo Group and its business partners are working hard to minimize the number of vehicles affected and the impact on customers by keeping flexibility to be able to increase production when possible.”