Volvo returns to full supply level as chip shortage ends. The worst of the processor shortfall has passed, according to Volvo CEO Jim Rowan, and the company has resumed full supply. Delays in the chip supply chain, which also negatively impacted every other automaker to some extent, directly contributed to a 22 percent decline in Volvo car sales.
The organization of Volvo might be perplexing because it is now a global firm that is a part of Geely Holding, rather than merely a Swedish automaker. Volvo, Zenseact (a software firm), and M Mobility are all owned by the group.
Volvo returns to full supply level as chip shortage ends
Moreover, Volvo owns a 46.5 percent share in Polestar, and Lynk&Co, another Geely-owned business, owns the other 30 percent.
This corporate circle is a never-ending, tail-eating snake-like company structure. In order to create an infotainment platform for the whole Volvo Group, including Polestar and Lynk&Co, Volvo made the strategic choice to join forces with ECARX to form the HaleyTek joint venture.
Belgium’s Ghent has built a new car battery assembly facility that will produce specialized battery packs for heavy-duty vehicles.
The issue is more complex than just the lack of chipsets. Inflation is having a negative impact on pricing as global production levels slowly increase. Many automakers have been raising the price of their electric vehicles, making many of them unaffordable and slowing the adoption of EVs.