Volvo Temporarily Closes Factory Due to Chip Supply Shortage

Volvo is experiencing a shortage of chip supplies so that the factory is temporarily closed. (photo: Twitter @volcocars)

JAKARTA - Swedish car manufacturer, Volvo Cars, will temporarily close one of its factories due to a shortage of chips. This was said by a spokesman for the company to the newspaper Goteborgs-Posten, Tuesday, October 25.

"There will be a temporary pause in production," Merhawit Habte, press spokesman at Volvo Cars told GP, adding the plant would be closed for one week. "This is an ongoing problem with semiconductor shortages."

Volvo said last month that demand remained good, but that component shortages as well as power outages and the COVID-19 outbreak in China were disrupting production.

Stellantis in France and Spain also experienced car factory closures due to chip problems. This problem is expected to remain looming over some car manufacturers if the world's supply of chips does not improve.

This also makes the European Union intend to build a chip factory in the near future to reduce dependence on supplies from China and Taiwan.