Volvo Cars has been forced to cut eight shifts at its largest plant because of the semiconductor shortage, a move that forced the automaker to adjust downward its full-year forecast for vehicle deliveries.
Volvo has canceled three shifts at its Torslanda factory, near Gothenburg, between March 27-28 and five shifts between March 31 and April 1, a spokeman told Automotive News Europe.
The automaker does not have enough of a specific type of semiconductor that controls a range of electronic functions in its models, the spokesman said, adding that Volvo aims to use the pauses in production to rebuild its supply of the key component.
Volvo makes the XC90 and XC60 SUVs and V90 station wagon at Torslanda on three shift.
The automaker expects the chip crunch to impact its ovverall global production through the second quarter, the company said in a statement.
"The disturbance means the company now expects marginal growth in deliveries for the full year 2022, compared to 2021," the automaker said.
Volvo, majority owned by China's Geely Holding, said the problems were not related to the war in Ukraine, but that fighting there had resulted in increasing costs for raw material, energy and freight.
"Volvo Cars continue to work with pricing to mitigate the effects," it said.
A global semiconductor chip shortage has slowed car makers' production lines despite recovery from the effects of the pandemic.
In February, Volvo said supply chain bottlenecks would remain a restraining factor, while the component shortage would only gradually improve.
Reuters contributed to this report
