Volvo Cars is experiencing a temporary worsened production situation, expected to last throughout the second quarter due to lack of a specific type of semi-conductor.
Over the past year, the auto industry has been impacted by the shortage of semi-conductors and Volvo Cars has previously communicated that it sees a gradual improvement in the supply of semi-conductors and production output month over month. However, due to this specific disturbance Volvo Cars now expects a temporary deviation from that trend.
Volvo Cars’ expectation has been to grow its sales volumes for the full year 2022. The disturbance means the company now expects marginal growth in sales volumes for the full year 2022, compared to 2021.
The expected disturbances in Volvo Cars’ production are not related to the war in Ukraine as Volvo Cars has very limited direct relationships with suppliers in Ukraine. The war in Ukraine has resulted in increasing costs for raw material, energy and freights in the auto industry. Volvo Cars continue to work with pricing to mitigate the effects.
The supply chain constraints, including the ongoing impacts from Covid, are expected to remain a problem for the industry throughout 2022. Volvo Cars will work with suppliers and partners to resolve any disturbances to production and deliver vehicles to customers as soon as possible.
This disclosure contains information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 22-03-2022 16:30 CET.