Semiconductor shortage halts Volvo truck production

Swedish auto giant Volvo announced Monday that it is being forced to halt its truck production due to a global shortage of semiconductors.

The world's second-largest producer of heavy goods vehicles "will implement stop days across its global truck manufacturing operations" in the second quarter, the Volvo Group said in a statement.

"In total, these are currently estimated to between two and four weeks depending on production site," the company said, acknowledging that the effect on output would be "substantial".

"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," Volvo said, warning the shortages would also affect its other business areas.

Automakers have been especially hard hit by the supply crunch for computer chips, which stems in part from outsized demand for personal electronics during the pandemic.

Ford and Volkswagen are among car manufacturers that have been forced to cut back on production due to the shortages.