Swedish truck maker Volvo Group warned on Tuesday that shortages of materials such as semiconductors would continue to hamper production in the second half of the year.
“The global supply chain for semiconductors as well as for other components remains unstable and with low visibility,” Volvo CEO Martin Lundstedt said in a statement as the company released its second quarter earnings. “There will be further disruptions and stoppages in both the truck production and other parts of the group in the second half of the year,” he added.
There will be further disruptions and stoppages in both the truck production and other parts of the group in the second half of the year- Volvo CEO Martin Lundstedt
The warning came as the company booked a net profit of 8.9 billion kronor (€868 million) in the second quarter. That compared to a net loss of 282 million in 2020, at the worst of the pandemic, and net profit is still below the second quarter of 2019, when it came in at 11.1 billion. Sales came in at 90.6 billion in the second quarter, down nearly a quarter from the pre-pandemic level.
Alongside wavering demand as a result of the COVID-19 pandemic, Volvo, like many other companies, have suffered from shortages of components, particularly semiconductors.
In March, the truckmaker announced would have to stop truck production for between two and four weeks depending on the production site, as the semiconductor shortage would “have a substantial impact on the Volvo Group’s production in the second quarter.”
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