STOCKHOLM — Volvo Automobiles will halt manufacturing at its Swedish plant in Torslanda, on the outskirts of Gothenburg, throughout subsequent week because of the scarcity of semiconductor chips, the automaker mentioned.

A worldwide chip scarcity over the previous yr has triggered a significant delay in manufacturing exercise and compelled a number of automakers to chop down on manufacturing.

“Because of the present materials scarcity state of affairs, triggered by a mix of worldwide semiconductor shortages and new COVID-19 outbreaks, Volvo Automobiles has determined to pause manufacturing in Torslanda for the week of Aug 30-Sep 3,” Volvo mentioned in an emailed assertion.

“Manufacturing is deliberate to renew on Sunday, Sep 5,” the Swedish firm, which had the same interruption of output at its Gothenburg plant solely two weeks in the past, added.

Volvo, which final month reported the most effective half-year gross sales and working revenue within the firm’s 94-year historical past as demand for electrified vehicles grew, additionally warned in July that the continued scarcity of microchips would negatively influence its leads to the second half.

“The bottom state of affairs that we now have is that the chip scarcity is not going to enhance, which suggests our gross sales and income progress within the second half will probably be flat in contrast with the second half of 2020,” Volvo Chief Monetary Officer Bjorn Annwall advised Automotive Information Europe.

Volvo is contemplating itemizing on the Nasdaq Stockholm inventory change this yr.

When requested whether or not the corporate’s robust first-half efficiency can be helpful because it gears up for a possible preliminary public providing, Volvo CEO Hakan Samuelsson advised ANE the figures have been the results of the corporate’s push to decrease its CO2 influence by quickly shifting to electrification.

Volvo desires full-electric vehicles to account for half of its world gross sales by mid-decade and to be an all-electric model by 2030.

Automotive Information Europe contributed to this report