Semiconductor shortage puts a strain on Volvo engines
The Swedish group Volvo announced that it is facing production difficulties related to the shortage of subcomponents for its engines and vehicles. It emphasizes in particular the problems encountered in the supply of semiconductors, which should have a substantial effect in the second quarter. The Volvo Group has already announced production shutdowns at its truck factories for periods of two to four weeks. All of the group's business areas are expected to face turbulence.
Volvo Penta representatives in France and the communications department did not wish to comment, but the marine and leisure sector will logically be impacted by the situation. Delays in deliveries could impact the entire marine industry and deliveries of new boats, since Volvo Penta is one of the major players in the OEM marine inboard engine market among pleasure boat manufacturers worldwide. The low visibility on the evolution of the situation of raw materials and electronic components invites the Volvo group to be cautious.
Volvo Penta marine engine production already difficult
This announcement comes on top of an already complex situation for the Swedish marine engine manufacturer. Volvo Penta was already facing production difficulties related to the foundry of its engine blocks. The manufacturer had to reorganize by repatriating the production of its blocks to its own foundry plant in Sweden, in Skövde, following the bankruptcy of its subcontractor, the German foundry Hallberg Guss in May 2020.
