According to Digitimes, Volvo CEO Jim Rowan said recently that the worst period of chip supply shortage has ended. The company has “returned to full supply level”. In the first quarter of this year, Volvo also suffered from chip shortages. As you can see, the crisis in the semiconductor industry affects cameras to vehicles. Worth noting that car sales fell 22 percent to 58,677 due to chipset shortages.
To those unaware, the Volvo Car Group belongs to Geely Holding. The group structure currently includes Volvo Cars, software company Zenseact (85% owned by Volvo Cars), and mobility company M. In addition to that, Volvo Car Group holds sizeable shares in strategic partners, such as a 49.5 percent stake in the high-performance electric vehicle brand Polestar. About 30 percent of the slice belongs to the fast-rising Lynk & Co.
Gizchina News of the week
Volvo is confident in the future of the automobile industry
Volvo Cars and ECARX formed the HaleyTek joint venture to develop an infotainment platform for the Volvo Group. The jointly-venture also involves other companies that use the Android Automotive Software – Android Auto. Volvo Cars and Geely Holdings are now part of a powertrain joint venture – Aurobay. The goal is to create a new internal combustion engine powertrain for the Group. It will also bring benefits to other companies. Both have set a common target of achieving synergies in performance development and low emissions.
In terms of electrification, the company has officially opened a new electric vehicle battery assembly line. The stronghold since at the company’s manufacturing plant in Ghent, Belgium. Back in May, Volvo Trucks was planning to open a new battery assembly plant in Belgium. It will start mass production in the third quarter of this year. Once the factory gets complete and put into production, it will supply the company’s heavy-duty electric trucks with special batteries. W0rth noting that the recent rise of electric vehicles generated a shortage of batteries.
Most of the companies that suffered from the chip forecast have been confident about the end of the shortage. However, the continuous global inflation means that the price hikes will continue regardless of the relief in the supply chain.