STOCKHOLM — Volvo Cars warned that sales volumes in the second half could fall after it was forced to cut production due to material shortages.
Global vehicle sales fell 11 percent to 45,786 from a year ago in August, despite strong underlying demand, the automaker said in a statement on Friday.
Volvo cautioned that the potential decline in volumes in the second half could impact revenue and profit.
Volvo said supplier shutdowns since mid-July due to local efforts to limit the spread of the highly contagious delta variant in southeast Asia had worsened an already strained supply situation, forcing it to halt production.
A global chip shortage over the past year had already caused a major delay in manufacturing activity and forced several automakers to scale back output.
Volvo’s vehicle sales fell 25 percent in Europe in August while they rose 3 percent in the U.S.
