Daimler CEO hopes to stabilize supply chain this quarter

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Ola Kaellenius, chairman of Daimler AG, attends the presentation of the brand new Mercedes-Benz S-Class on the Daimler manufacturing plant in Sindelfingen close to Stuttgart, Germany, September 2, 2020. REUTERS/Ralph Orlowski/File Photograph

DETROIT, Oct 22 (Reuters) – Daimler AG Chief Govt Ola Kaellenius advised Reuters on Friday the automaker hopes to stabilize its provide chain for semiconductors throughout this quarter, however expects actual aid from shortages of chips is not going to arrive till 2023.

Kaellenius, who’s visiting Mercedes operations in the USA, mentioned manufacturing of Mercedes autos through the fourth quarter might be decrease than a yr in the past, which was an unusually sturdy quarter as the corporate started recovering from pandemic shutdowns.

“We can not have one hundred pc certainty” about provides of semiconductors, Kaellenius mentioned. COVID-related shutdowns this summer time at Malaysian crops that course of semiconductors set again the auto business’s efforts to get better manufacturing misplaced earlier within the yr.

“We hope to have the ability to stabilize the scenario within the fourth quarter, and take that to the subsequent degree in 2022,” he mentioned. Nonetheless, he mentioned, main chip producers are saying restrictions in provide may proceed into 2023.

“We’ve got to remain versatile,” Kaellenius mentioned.

Daimler is managing supply-chain disruptions on prime of planning for a cut up of the corporate right into a standalone luxurious car firm, Mercedes-Benz, and a separate industrial truck enterprise. Mercedes is accelerating its shift to an all-electric lineup by 2030.

Mercedes is launching an electrical top-of-the-line sedan, the EQS, and is making ready to launch manufacturing of an electrical EQS SUV at its manufacturing unit in Alabama that may go on sale subsequent yr.

“We try to hurry up the transition” to electrical autos, Kaellenius mentioned.

The EQS sedan and SUV needs to be “worthwhile from the phrase go” within the U.S. market, he mentioned.

Reporting by Joe White in Detroit
Modifying by Matthew Lewis


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