According to European Automotive News, Volvo Cars will temporarily suspend production at its Swedish plant near Gothenburg due to the shortage of semiconductor chips.

"Production at Torslanda will be paused temporarily from this evening due to a material shortage linked with the semiconductor issue," Volvo said on Wednesday. "out put will restart as soon as possible, at the latest before next week."

The report pointed out that the global chip shortage has hit manufacturing, with automakers cutting down on production and electronic device makers struggling to keep up with a pandemic-led surge in demand for phones, TVs and gaming consoles.