Volvo Cars' vehicle sales plunged by more than a fifth in October as the company struggled with supply-chain snarls, adding to signs that 2021 could become another difficult year for automakers.
Shipments in China fell by about a third while sales in Europe declined 22 percent amid a “lack of available cars,” Volvo said in a statement Wednesday.
Vehicle manufacturers are struggling with a semiconductor shortage that is forecast to cost the industry $210 billion in sales this year, according to AlixPartners.
Volkswagen Group's Skoda unit said Nov. 1 it would scale back production over the coming weeks because of the continuing chip bottlenecks.
It's unclear when exactly the supply situation will improve. Many automakers have mitigated the issues by raising prices and steering production to their most lucrative models, but parts supplier including Continental and Faurecia have been hard hit by the crisis.
Volvo Cars CEO Hakan Samuelsson told Bloomberg Television last week the supply situation will normalize and will not pose a problem for the automaker's long-term development.