Pre-production of the new Volvo XC40 in the manufacturing plant in Ghent

Volvo expects reduced production due to “lack of a specific type of semi-conductor”

Volvo Cars announced today that is experiencing a temporary worsened production situation, expected to last throughout the second quarter due to lack of a specific type of semi-conductor. The company said that will work with suppliers and partners to resolve any disturbances to production and deliver vehicles to customers “as soon as possible”.

Pre-production of the new Volvo XC40 in the manufacturing plant in Ghent (Source: Unknown)

“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.” — the company said.

Last November, Volvo Chief Financial Officer (CFO) Bjorn Annwall said that the company wants to build a third factory in Europe after 2025. The company targets selling 1.2 million vehicles annually by 2025.


The Swedish carmaker expects to grow its sales volumes for the full year 2022. The disturbance means that Volvo now expects marginal growth in sales volumes for the full year 2022, compared to 2021. 

According to the company, the reduced production is 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.