Volvo Stops Production At US Factory, Here's The Problem

JAKARTA - Volvo in the United States continues to experience endless problems, after struggling with slow demand for its electric vehicles, then battling US President Donald Trump's tariff strategy, now forced to stop production of the EX90 SUV.

Citing from the Carscoops page, Saturday, May 31, the Swedish brand was forced to stop production of the electric version of EX90 due to a shortage of parts, and the model was made at US Volvo facilities in Ridgeville, South Carolina.

This problem reminds automakers of the chaos during the Covid pandemic, when shortages of semiconductor chips force many companies to stop production, or build cars without some key technology features.

According to a report from Auto News, Volvo has yet to provide an official statement regarding what components are in limited supply, even a long duration of the production break. However, potential customers are required to wait for EX90's delivery to stay connected to the dealer network to get the latest information regarding orders that have been made.

As is known, the EX90 SUV has indeed experienced several production constraints. In fact, his planned debut in 2023 has been postponed to 2024 due to software code problems in the Lidar area.

Not only that, when the SUV officially launched on the market there was a problem again such as a self-driving system that had not yet operated properly, even though the hardware had been installed.

Trump's policy impact

Earlier this month Volvo confirmed that the company cut 125 staff out of 2,500 Ridgeville factory employees due to changing trading policies, tariffs, and changes in market conditions. The problem has slowed sales of electric vehicles.