STOCKHOLM — Volvo Vehicles will briefly cease or modify manufacturing in China and the USA for components of March attributable to a global shortage of semiconductor chips.

“We anticipate the state of affairs to turn into important in the course of the second quarter and have subsequently determined to take measures to reduce the influence on manufacturing whereas working each day to enhance the state of affairs,” Volvo stated in an e-mailed assertion on Wednesday.

“Volvo Vehicles will briefly cease or modify manufacturing in a few of its automotive factories (in the USA and China) in the course of the month of March,” it stated.

The Swedish automaker, which is owned by China’s Geely Holding, stated final month it had to date not misplaced volumes as a result of chip scarcity, however added there was a “huge danger” it might occur in the course of the first quarter.

The scarcity has hit automakers globally and stems from a confluence of things as automakers compete with the buyer electronics business for chip provides.