2022 Volvo XC40 Recharge, Volvo
“Now that the lockdowns in China are in the past, we have restored full chip supplies—for Volvo Cars, at least,” he added.
Volvo Cars mentioned in an earnings report that they have witnessed a “significant improvement in stabilizing their supply chain, with production rebounding strongly in June.” While an improvement in a single, relatively smaller automaker might not signify a complete recovery across the industry, there are indications that the provision of automotive-grade chips might see a revival. According to data from Electronics Engineering Journal referenced by Kelley Blue Book, the production of low-power automotive chips is anticipated to grow by around 14% compared to 2020 levels by the end of 2023. Most of this increased supply is expected to reach automakers before the conclusion of this year.
2022 Volvo S90 Recharge T8 AWD, Volvo
Although an increase in chip production capacity won’t immediately resolve the shortage, as the additional chip supply will require time to reach automakers and then consumers, the effects of increased chip supplies will be felt gradually. A return to the previous level of normalcy may not happen swiftly. The era of low-priced new cars may be a thing of the past.
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