Mercedes-Benz maker Daimler AG expects the global semiconductor chip shortage to have an impact on vehicle sales until 2022, but less severe than experienced this year.
Daimler is up 1.60%
Daimler Chief Financial Officer Harald Wilhelm said the chip shortage will continue, along with the higher prices of steel, copper, and aluminum in the second semester of 2021.
Chief Executive Ola Källenius said the shortage is a “fixable problem,” but noted that the company continues to prioritize improving supply visibility. The company was forced to cut production amid the chip shortage.
Källenius said the company still has some unfinished cars due to the lack of chips, but it will not balloon out of proportion. Supply chain concerns are holding back production, even as orders for the flagship sedans were “very healthy.”
Daimler expects lower profit margins for its truck and bus division this year at between 6% and 7%, lower than its earlier outlook of 6% to 8%. earnings before interest and tax hit 5.42 billion euros in the second quarter.
Full-year car sales for the year are expected to hover around 2020 levels, down from the earlier forecast of significant growth.