European vehicle maker Volvo Group said the ongoing semiconductor shortage and supply-chain snarls will limit its production of trucks this year.
Disruptions and stoppages in the production of trucks will continue, Volvo said in releasing its third quarter financial results.
Volvo cut its forecast for the truck market in Europe and North America this year by 30,000 units. The company said it expects the markets to grow again in 2022.
The company reported third quarter operating profit of 9.4 billion Swedish kronor ($1.1 billion U.S.), beating the average estimate of Wall Street analysts.
Despite the challenges, Volvo managed to grow third-quarter sales but the chip crunch and additional supply chain issues forced the company to stop production of many of its vehicles for several weeks during the quarter.
While demand remains robust in Europe and North America, the manufacturer delivered slightly fewer trucks in Q3 than in the three months through the end of June.
The manufacturer also warned of issues in China as part of its third quarter results, where the market for construction equipment is “declining sharply” after several years of high demand.
