Scania is pausing production at its truck plants in Sweden

The truck manufacturer Scania, which belongs to the commercial vehicle division of Volkswagen AG (OTC: VWAGY), Traton SE, will stop production at its European truck plants this week due to the shortage of semiconductors, the company announced on Monday. A global shortage of chips led to a significant delay in production activity in the past year and forced several automobile manufacturers to cut back their production. Scania is pausing production at its truck plants in Sweden, France and the Netherlands for the entire week, said a company spokesman. "We are throttling production to a temporarily lower volume," said Karin Hallstan, Scania's press officer, adding that the company's South American plants will pause truck production for the next week. "They keep production going for a few days while we hold back here in Europe," she said. According to a survey published by Silf / Swedbank on Monday, delivery interruptions are currently having a negative impact on operations at 70% of Swedish manufacturing companies. According to the survey, sixteen percent of companies have revised their production plans downwards for the next six months due to a lack of materials. Volvo Cars, which is owned by Geely, announced last week that it would cease production at its Gothenburg facility this week, and AB Volvo, a competitor of Scania, warned of further production disruptions and shutdowns last month.