Truck, bus and construction equipment firm Volvo Group has become the latest firm to warn it is facing a ‘considerable’ risk of financial damage as a result of the coronavirus pandemic.
The virus has hit firms in multiple industries across the globe, as supply chains have been disrupted, borders closed and whole countries on lockdown to limit people’s movement – and consequently their spending habits.
Volvo Group has now released a statement outlining the issues it is facing and the mitigation measures it is putting in place to try to reduce the impact on the firm’s financial performance.
It said: “The consequences of the Covid-19 outbreak is affecting the Volvo Group, and there is a considerable risk of a material financial impact on the group as from mid-March.
“The Volvo Group and its suppliers are continuously working to minimise any consequences for customers and mitigating the impact on the group.
“The impact is related to the general situation and decisions made by local authorities resulting in among other things workforce shortage in the production and supply chain disruptions. There is also a potential impact on demand going forward.
“Given the uncertain situation, it is not currently possible to predict the full potential impact on the Volvo Group.”