Volvo Drops in Stockholm After Sales Plunge 22% in October
Volvo Car AB’s vehicle sales plunged by more than a fifth in October as the company struggled with supply-chain snarls, adding to signs that 2021 could become another disastrous year for automakers.
Shipments in China fell by about a third while sales in Europe declined 21.5% amid a “lack of available cars,” the Swedish company said in a statement Wednesday.
Car manufacturers are struggling with a semiconductor shortage that’s forecast to cost the industry $210 billion in sales this year, according to AlixPartners. Volkswagen AG’s Skoda unit said Nov. 1 it would scale back production over the coming weeks because of the continuing chip bottlenecks.
Volvo Cars declined 1.7% as of 11:23 a.m. in Stockholm. The company had surged in its trading debut last week.
It’s unclear when exactly the supply situation will improve. Many carmakers have mitigated the issues by raising prices and steering production to their most lucrative models, but parts makers including Continental AG and Faurecia SA have been hard hit by the crisis.
Volvo Cars Chief Executive Officer Hakan Samuelsson told Bloomberg Television last week the supply situation will normalize and won’t pose a problem for the carmaker’s long-term development.
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