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Volvo Slumps as Chip Shortage Will Idle Truck Plants
- European truck factories hit hardest by supply chain issues
- Economic impact uncertain amid ‘constantly changing’ situation
Source: Volvo Group
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Volvo Group declined after the truckmaker said it’ll have to suspend production across its operations because of the shortage of semiconductors that’s disrupted the car industry for months.
Output may come to a standstill for two to four weeks at the beginning of the second quarter after a chip-factory fire exacerbated supply issues. Volvo’s factories in Europe are likely to be worst affected by the shortages, according to spokesman Claes Eliasson. Manufacturing of trucks and construction equipment in other parts of the world will also be impacted.