Volvo Cars studies 30% gross sales drop in September as chip disaster weighs

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STOCKHOLM, Oct 4 (Reuters) – Geely-owned Volvo Car Group’s month-to-month gross sales fell 30.2% from a yr in the past in September, dented by the worldwide part scarcity, the Sweden-based automaker stated on Monday.

The firm warned final month that gross sales volumes within the second half of 2021 may fall year-on-year after manufacturing cuts as a consequence of materials shortages. learn extra

“The decline was related to a shortage of components. This affected production although it picked up again late in the month,” Volvo Cars stated in a press release, including demand for its merchandise remained sturdy.

Global gross sales on the agency, which is contemplating itemizing on the Nasdaq Stockholm inventory change this yr, fell to 47,223 automobiles in September, with gross sales in Europe dropping 41.5% whereas they fell 9% within the United States.

A worldwide chip scarcity over the previous yr has brought about a significant delay in manufacturing exercise and compelled a number of automakers to reduce output.

Sources informed Reuters final month that China’s Geely Holding (GEELY.UL) was in superior discussions with banks to listing Volvo Cars within the coming weeks, aiming for a valuation of about $20 billion. learn extra

Reporting by Helena Soderpalm, modifying by Supantha Mukherjee and Niklas Pollard

The logo of Swedish truck maker Volvo is pictured at the IAA truck show in Hanover, September 22,  2016.  REUTERS/Fabian Bimmer