AutoBeta(AutoBeta.net)03/18 Report--

Due to the shortage of cores, a number of automobile companies around the world have publicly indicated that they will reduce or stop production since 2020. Volvo, one of the global multinational car companies, will temporarily suspend or adjust car production in China and the United States due to a shortage of spare parts in March due to a global shortage of semiconductor chips, the Financial Associated Press reported.

Volvo announced Wednesday night that due to a global chip shortage, "in March, Volvo will temporarily suspend or adjust production at some car plants, such as the United States and China.

Although Volvo did not disclose the size of the affected vehicles, it announced in an email that the company expects to face the most serious challenges in the second quarter, so it will decide to take measures to make adjustments on a daily basis. minimize the impact on production.

It was only last month that Volvo announced that it had not received any sales losses due to chip shortages, but added that there could be significant risks in the first quarter. It also said the chip shortage had affected production at its Ghent plant in Belgium and warned that production could be further halted. Claes Eliasson, a spokesman for Volvo, said: "We don't run any production lines, so we didn't have the whole car off the line this week."

Similarly, the shortage of chips will have a major impact on the auto industry, and Volvo is not the only car company that has publicly announced that it will cut production or stop production. At present, a number of car companies, including Volkswagen, Toyota, Ford, Daimler, General Motors and Renault Group, have announced that they have adjusted their production plans due to the shortage of semiconductor chips.

Volkswagen Group CEO Herbert Dis said at its 2021 news conference on March 16 that the company had lost production of 100000 vehicles in the first two months of this year as a result of global chip shortages and cold weather in the United States, which will not be made up for this year. On the same day, Honda said it would temporarily suspend some production at all US and Canadian plants next week due to a series of supply chain problems.

Previously, Bernstein Research estimated that the global shortage of automotive chips in 2021 would result in a loss of production of as many as 4.5 million vehicles, equivalent to about 5 per cent of global annual car production. Clearly, it will take some time to resolve the current chip shortage, GlobalFoundries semiconductor executives have responded: "for some people, this may continue for a longer period of time, and it is difficult to predict."

In the final analysis, the reason for this is that the impact of the epidemic began in the second half of last year, which reduced the chip production capacity. Not only the automotive industry, but also technology areas such as mobile phones and computers have been significantly affected.

After all, chips are in the upper reaches of the industry and need close cooperation between the upstream and downstream of the industrial chain. if the cooperation between upstream and downstream supply cannot be realized, there are bound to be relatively big problems. and at present, there are only a few giant companies that can achieve the most advanced chip manufacturing in the global market, and these areas are areas with a relatively serious epidemic, which will inevitably lead to a slowdown in production and even a shortage of supply.

Although the epidemic situation in China has been effectively alleviated, there is no advanced chip manufacturing that can be realized, so that the whole chip industry is almost monopolized.

With the demand for cutting-edge technology for cars, the shortage of chips naturally affects the manufacturing of car companies, so China, as Volvo's largest single market, is bound to be affected to a certain extent.

Volvo sold 10050 cars in China in February, up 744.5 per cent from a year earlier, according to official figures. Of this total, Volvo XC60 sold 3526 vehicles, a year-on-year increase of 657%. From January to February this year, Volvo sold a total of 29172 vehicles in the Chinese market, an increase of 160.9 per cent over the same period last year. For the production adjustment in China, it means that March may be significantly affected.

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