Daimler Trucks production below demand due to chip shortage – CEO

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  • Daimler Vans manufacturing hit by chip shortages
  • CEO – “It is a struggle for each chip”
  • Firm nonetheless dedicated to cost-reduction goal for 2025

BERLIN, Oct 5 (Reuters) – Daimler Vans CEO Martin Daum mentioned the truckmaker, set to spin-off from Daimler in December, will proceed to promote fewer automobiles than it might have within the coming 12 months as chip shortages hamper manufacturing.

“We will definitely be delivering lower than we might have bought, and that additionally applies to subsequent 12 months,” he mentioned at a roundtable with journalists on Tuesday, echoing latest warnings from rivals like Traton that earnings might fall within the second half as a result of provide chain points.

“It is a struggle over each chip,” Daum mentioned.

Whereas passenger automobile producers resembling BMW or Daimler can improve costs to offset chip losses, truckmakers should not have this flexibility, he mentioned.

Nonetheless, the corporate has dedicated to a 15% fixed-cost discount from 2019 ranges by 2025, and cuts are “properly underway”, he mentioned. A concrete replace can be supplied on the firm’s Capital Markets Day on Nov. 11.

Daimler Vans & Buses, which previous to the pandemic reaped annual earnings of round 2 billion euros ($2.3 billion), is about to turn out to be the world’s largest truckmaker as soon as the spin-off from Daimler – accredited by shareholders on Friday – is full.

Between chip troubles and missing infrastructure for the hydrogen and electrical vans it’s betting on for 60% of its revenues by 2030, the newly spun-off agency is coming into a difficult market.

Its newest outcomes present revenue margins lagging behind rivals resembling Traton’s Scania and Volvo Group’s Volvo Vans.

The truckmaker will begin manufacturing of its first electrical truck sequence, eActros, in Germany this week. Excessive manufacturing prices imply the value is roughly 3 times that of a diesel equal.

“As battery costs fall, we will definitely cross this on to our shoppers. However how rapidly this can occur, I am unable to say,” Daum mentioned, including that CO2 pricing was urgently wanted to disincentivise the manufacturing of fossil fuel-burning vehicles.

($1 = 0.8619 euros)

Reporting by Victoria Waldersee; Enhancing by Maria Sheahan and Louise Heavens


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