Global automaker Volvo Cars will suspend or adjust car production in China and the US following a shortage of semiconductor chips.
According to media reports, the company, said in an email last week that it expects the chip shortage to continue into the latter half of 2021, and the move will minimize any negative impact on total production.
Automobile manufacturers worldwide have felt the effects of the chip shortage, and many have taken steps to mitigate the impact. The European carmakers association, ACEA, has also urged the European Commission to expand outreach to Asian semiconductor chip suppliers to ease the shortage.
Volvo Cars is a subsidiary of China’s Geely Holdings that recently formed a $300mn mobility fund with South Korea’s SK Holdings. The latter is a chemicals and semiconductors company, and Geely’s primary focus is in electric vehicle (EV) manufacturing. The fund will invest in upstream EV manufacturers and suppliers.