Volvo on Monday said it was cutting down truck production in Brazil significantly for the rest of the month due to the worldwide shortage of semiconductors and also partly due to the worsening COVID-19 pandemic in the country.
Volvo is partly following in the footsteps of Volkswagen which on Friday said it would stop all auto production for two weeks to preserve the health of its workers. The pandemic in Brazil is at an all-time high, with daily death tolls that are the worst in the world.
While Volkswagen did not cite a lack of semiconductors as a factor in its decision, Brazil’s automakers association Anfavea said earlier in March that all car factories were being affected.
Several other automakers have also curbed production in Brazil due to lack of parts, mainly semiconductors, although they have not cited health concerns.
General Motors has interrupted production at its Gravataí plant where it makes its best-selling Onix compact car.
Honda had interrupted production for its Civic sedan earlier in March, while Fiat had furloughed about 10% of its workers until last week to slow down production.