STOCKHOLM -- Volvo Cars will temporarily stop or adjust production in China and the United States for parts of March due to a global shortage of semiconductor chips.
"We expect the situation to become critical during the second quarter and have therefore decided to take measures to minimize the impact on production while working daily to improve the situation," Volvo said in an e-mailed statement on Wednesday.
"Volvo Cars will temporarily stop or adjust production in some of its car factories (in the United States and China) during the month of March," it said.
The Swedish automaker, which is owned by China's Geely Holding, said last month it had so far not lost volumes due to the chip shortage, but added there was a "big risk" it could happen during the first quarter.
The shortage has hit automakers globally and stems from a confluence of factors as automakers compete with the consumer electronics industry for chip supplies.
