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Monday, January 24, 2022

Volvo Cars December sales drop as chip shortage persists

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STOCKHOLM -Volvo Car Group’s sales fell 18.1% in December pressured by the lingering global component shortage, the Sweden-based automaker said on Wednesday.

Volvo, which has been heavily impacted by sector-wide supply-chain constraints and semiconductor shortages, warned in November that the chip shortage would continue into 2022.

Global sales at the firm fell to 64,436 cars in December, with sales in Europe dropping 15.1%, while they fell 26.7% in the United States.

“The result was significantly influenced by continued component supply shortages, which affected production and consequently deliveries to customers,” Volvo said in a statement, adding that demand for its products remained strong.

Sales at the Gothenburg-based company grew 5.6% last year to 698,693 cars, of which 27% were Recharge models with a fully electric or plug-in hybrid powertrain.

Volvo’s 2021 full-year outlook is for sales volume and revenue growth with improved profitability to pre-pandemic levels. It is due to post fourth-quarter earnings on Feb. 11.

The company, which is majority owned by China’s Geely Holding, listed on Nasdaq Stockholm in October after wrapping up Europe’s biggest IPO of the year.

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