Like many other car manufacturers, the Chinese carmaker Geely Automobile, the sister company of the Swedish Volvo Cars, is suffering from shortages of computer chips.
According to Geely, these shortages inhibit production, while the demand for cars is increasing sharply. This could potentially jeopardize its sales target this year, the company said.
The carmaker is part of Zhejiang Geely, which is also the parent company of Volvo Cars and Polestar. In addition, Geely has a significant interest in the German Daimler, the parent company of Mercedes-Benz.
Geely has an ambition for a sales increase of 16 percent this year compared to 2020 but says that the chip shortages and also the rising number of corona infections in the world due to the Delta variant could undermine this goal.
The company believes higher commodity prices will ease for the rest of this year, but the chip shortage could persist. In the first half of this year, Geely failed to achieve half of its target for 1.53 million vehicles delivered for the full year.