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Scania Stops European Production This Week; Is Eyeing To Make The Same Move Next Week In South America

TNI || New Delhi || 31 Aug 2021

Scania is halting the production of its European truck plants this week because of a shortage of semiconductors.

There has been a global chip shortage due to what had happened last year, and therefore it has caused a major delay in the manufacturing activity and has forced many manufacturers to either cut or shut down their production.

Scania is currently pausing its operations in Sweden, France, and The Netherlands, at least for this week.

As per the company’s press chief, they are temporarily slowing down the production volume, and the South American plants will pause production next week.

As of now, the South American plants are keeping up the production for the next few days till the time the company is holding back in Europe.

The disruptions in delivery are affecting operations at 70% across Swedish manufacturing companies. While Volvo cars announced last week that it will halt the production at its Gothenburg plant,

AB Volvo, which is a rival of Scania, has already warned last month of more disruptions in production and even stoppages.

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