Shortage of semiconductors impacting production
The global shortage of semiconductors will have a substantial impact on the Volvo Group’s production in the second quarter. In the beginning of the quarter, the Group will implement stop days across its global truck manufacturing operations. In total, these are currently estimated to between two and four weeks depending on production site. In addition, disturbances are also expected to impact the Group’s other business areas.
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.
March 22, 2021
Journalists wanting further information, please contact:
Claes Eliasson, Volvo Group Media Relations, +46 76 553 72 29
This information is information that AB Volvo (publ) is obliged to make public pursuant to the Financial Instruments Trading Act. The information was submitted for publication at 6.50 p.m. CET on March 22, 2021.
For more information, please visit volvogroup.com
The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs almost 100.000 people and serves customers in more than 190 markets. In 2020, net sales amounted to about SEK 338 billion (EUR 33.6 billion). Volvo shares are listed on Nasdaq Stockholm.