Chip Shortage Forces Temporary Closure Of Volvo Cars Factory: Report

Swedish automaker Volvo Cars will temporarily close one of its factories due to a chip shortage, the company told the newspaper Goteborgs-Posten on Tuesday.

"There will be a temporary break in production," Merhawit Habte, press spokesperson at Volvo Cars told GP, adding the factory will be closed for one week. "It is the ongoing problem with semiconductor shortages."

Volvo said last month that demand remained good, but the component shortages as well as power cuts and COVID-19 outbreaks in China interrupted output.