Volvo Cars said on March 22 that it was forced to lower its full-year car production and delivery forecasts as semiconductor shortages continue to affect its car production,media reported.

　　(Image credit: Volvo)

　　Volvo Cars said in a statement that it will struggle to meet production forecasts for this year as a semiconductor shortage has forced its factories to shut down again. Volvo said it had decided to cancel five shifts at its Torslanda plant, which makes the XC60 and XC90 SUVs, due to problems sourcing a particular type of chip, with the shutdown expected to last into the second quarter.

　　At the same time, Volvo also lowered its sales outlook for this year. "Volvo Cars originally expected sales to increase this year, but given the current situation, the company now expects sales to only increase slightly this year." The company revealed that it has lowered its production and sales this year. Volume expectations have nothing to do with the situation in Russia and Ukraine, but it is undeniable that the situation in Russia and Ukraine has led to rising costs of raw materials, energy and freight.

　　At present, although companies have recovered from the impact of the new crown pneumonia epidemic, the production speed of car companies has slowed down due to the global shortage of semiconductor chips. In February, Volvo said supply chain bottlenecks would remain a constraint, while parts shortages would only gradually improve.

　　This article is reproduced from Gasgoo