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Volvo Cars reports 30% sales drop in September as chip crisis weighs

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The brand of Swedish truck maker Volvo is pictured on the IAA truck present in Hanover, September 22, 2016. REUTERS/Fabian Bimmer

STOCKHOLM, Oct 4 (Reuters) – Geely-owned Volvo Automobile Group’s month-to-month gross sales fell 30.2% from a 12 months in the past in September, dented by the worldwide part scarcity, the Sweden-based automaker stated on Monday.

The corporate warned final month that gross sales volumes within the second half of 2021 might fall year-on-year after manufacturing cuts attributable to materials shortages.

“The decline was associated to a scarcity of parts. This affected manufacturing though it picked up once more late within the month,” Volvo Automobiles stated in a press release, including demand for its merchandise remained sturdy.

International gross sales on the agency, which is contemplating itemizing on the Nasdaq Stockholm inventory alternate this 12 months, fell to 47,223 automobiles in September, with gross sales in Europe dropping 41.5% whereas they fell 9% in the US.

A worldwide chip scarcity over the previous 12 months has induced a significant delay in manufacturing exercise and compelled a number of automakers to reduce output.

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

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

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