Volvo has paused its only U.S. assembly plant, in South Carolina, due to a parts shortage. The factory builds the company’s flagship EX90 electric SUV, as well as the Polestar 3, an SUV sold by all-electric automaker and Volvo affiliate Polestar.
Industry publication Automotive News reports that the facility “has an annual capacity of about 150,000 light vehicles but only produced an estimated 8,590 EX90 and 4,000 Polestar 3 models last year.”
S&P Global Mobility reports, “Volvo has not disclosed how long the shutdown will last but is working with suppliers to address the issue and resume production promptly.”
The automaker blames “a parts shortage” for the move but hasn’t explained which parts are in short supply. Volvo spokesperson Russell Datz says the pause began late last week, and the company is “working to resume production as quickly as possible.”
Many auto plants operate on a just-in-time production system where parts are used the day they arrive at the factory. A delay in receiving even a minor part can shut down an entire factory. Just this week, The New York Times revealed that Ford recently suspended Explorer production for a week when a burgeoning trade war left it short of small magnets sourced from China.
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Volvo can ill afford major interruptions. Automotive News notes that the company “is in the midst of a sweeping restructuring after reporting a 60% plunge in first-quarter operating income.” New CEO Hakan Samuelsson recently revealed that any further change in tariff policy could make its new EX30 subcompact SUV impossible to sell at a profit in the U.S.
