STOCKHOLM (Reuters) - Volvo Cars, owned by China's Geely Holding, will halt production at its Swedish plant in Torslanda, on the outskirts of Gothenburg, during next week due to the shortage of semiconductor chips, it said on Monday.
A global chip shortage over the past year has caused a major delay in manufacturing activity and forced several automakers to cut down on production.
"Due to the current material shortage situation, triggered by a combination of global semiconductor shortages and new Covid-19 outbreaks, Volvo Cars has decided to pause production in Torslanda for the week of Aug 30-Sep 3," Volvo Cars said in an e-mailed statement.
"Production is planned to resume on Sunday, Sep 5," the Swedish firm, which had a similar interruption of output at its Gothenburg plant only two weeks ago, added.
Volvo Cars, which last month reported a return to profit in the first half as demand for electric cars grew, is considering listing on the Nasdaq Stockholm stock exchange this year.