Volvo Q3 sales profit slumps due to chips shortage – production down by 50k cars, crisis to go into 2022 –

Sales for Volvo Cars in the third quarter of 2021 fell 17% compared to the same period last year, a result largely caused by the sector-wide semiconductor shortage. The crisis is related to a Covid-19 outbreak in Southeast Asia, which impacted Q3 production and sales volume.

In a press statement, company CEO Hakan Samuelsson said: “Production was approximately 50,000 cars lower in the quarter compared to the same period in 2020, while sales in the period fell by approximately 30,000 cars as the drop in production volumes was compensated by lowered inventory.”

Samuelsson also noted that the chips crisis has eased going into the fourth quarter, but said “we expect the industry-wide shortage to remain a restraining factor” going into the new year. Preliminary figures for retail sales in November is about 52,000 cars, down year-on-year due to lower production and in-transit inventory (global shipping crisis).

Volvo’s Q3 operating profit is 3.3 billion Swedish crowns (RM1.53 billion), versus 4.6 billion (RM 2.14 billion) from Q3 2020. Revenues are down 7% to 60.8 billion crowns (RM27.9 billion). However, Samuelsson remains confident that the company will meet its full-year outlook of sales volume and revenue growth, with improved profitability to pre-pandemic levels.

“For Volvo Cars that means we aim to be the fastest transformer in our industry, and to become a fully electric carmaker by 2030 and a climate neutral company by 2040,” the CEO said.

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