Volvo Cars is temporarily reducing production

For the second quarter, Volvo Cars sees the situation increasingly critical. Production in many plants will be temporarily cut back. The reason for this is a lack of semiconductor components, which not only affects Volvo. Other Swedish brands are also suffering from it, sometimes more so than the manufacturer from Gothenburg.

Volvo is temporarily reducing production. Here in Daqing, China
Volvo is temporarily reducing production. Here in Daqing, China

The semiconductor crisis

Volvo is Sweden's largest private employer and so far it has come through the semiconductor crisis well. While production has already been reduced for the plants in China, Belgium and the USA, the Swedish plants have not yet been affected.

But the situation is becoming increasingly critical, as CEO Håkan Samuelsson im Interview said. Volume adjustments in the next few weeks will be inevitable for individual models. It is still assumed, however, that Swedish production will not come to a standstill.

So far, not every manufacturer has come through the crisis so well that there seems to be no quick end in sight. AB Volvo, manufacturer of trucks, has announced a complete production stop that will last two to four weeks. A hard blow for the producer. Meanwhile, Scania AB has been navigating safely through the problematic environment. Production is currently continuing undisturbed.

Samuelsson does not expect the crisis to end quickly. The plans are short-term and can only be made a few weeks in advance. It alone seems certain that Volvo will produce fewer cars than planned and perhaps requested by the customer.

3 thoughts on "Volvo Cars is temporarily reducing production"

  • blank

    Classic bullwhip effect! Manufacturing around the globe cannot meet this huge demand on schedule. The last 24 months have been (again) the purest roller coaster ride and the pandemic has fueled that even more.

    It's not just the OEMs like Volvo who suffer. The chain begins much earlier in the area of ​​raw material and manufacturing material suppliers. Even after this wave, normalization will set in again, but one thing is clear - the number of semiconductors per vehicle is steadily increasing and this applies to almost all vehicle classes.

    All in all, a matter of priorities and management. It's like being on the high seas; after the storm comes the calm or the delivery date that has yet to be met 😉

  • blank

    Less electronics results in fewer semiconductors, and of course vise-versa !! I'm glad that my Saab is not yet “overelectronic”.

  • blank

    Memorable

    That makes me think. I just don't know what to think about it? Exciting …

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