The Covid-29 lockdowns in China have continued to affect the delivery of Volvo’s electric and plug-in hybrid vehicles during the third quarter, it was reported.
“The Swedish carmaker pointed to a shortage of components as a reason for sales in June falling 27% compared to the same month last year. However, the company is starting “to see a marked improvement in its manufacturing situation, with the number of cars produced in June being the highest in the year,” according to a statement.
The development marks the latest supply-chain issue to grip the global auto industry. Last week saw Tesla Inc. cite factory shutdowns in Shanghai as a reason for disappointing car deliveries while General Motors Co. issued a profit warning amid a backlog of 95,000 vehicles that can’t be sold until semiconductors arrive to finish assembly.
Volvo Cars shares gained as much as 1.9% in Stockholm on Monday while the OMX Stockholm All Share Index advanced 0.9%”, as per Bloomberg.