VLVOF - Volvo Car sales slump amid persistent supply chain problems

Volvo Car Group ( OTCPK:VLVOF ) sales slid sharply in July as the company’s supply chain issues hampered its ability to keep up with demand.

Per a press release on Wednesday, sales for the month fell 21.5% from the prior year as a shortage of components like semiconductors constrained production.

“July sales continued to be affected by supply constraints being carried over from previous months due to Covid-related lockdowns in China,” a company statement read. “This particularly affected retail deliveries of Recharge cars during the month and is expected to continue to affect its retail sales into the current quarter.”

Still, management remained confident in a normalization for the full year as improvements continue to progress in providing critical components.

“Volvo Cars continues to see a marked improvement in the stabilization of its supply chain, with July confirming the positive trend in production as seen already in June,” the company said. “Provided this normalization continues, the company expects production to progressively increase in the coming months”

Retail sales are projected to be flat or slightly lower for the full year 2022 as compared to volumes in 2021.

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