Daimler’s management dropped its hands due to a shortage of chipsJuly 21, 2021
Daimler said that sales growth in the main division of Mercedes-Benz in early 2021 will be offset by a shortage of semiconductors in the world, which the automaker expects to overcome only in the second half of the year. Sales of Mercedes vehicles are expected to remain roughly flat this year, rather than increasing significantly from 2020.
Daimler said in a statement that the microchip shortage will have a negative impact on business throughout the year, and the company is not yet optimistic.
“The entire industry is currently struggling with longer delivery times, which unfortunately also affects our customers,” said CEO Ola Kallenius. “We are doing everything we can to minimize the impact.”
CFO Harald Wilhelm told investors that while the chip shortage will last until 2022, it will go on to be less severe than this year. However, Daimler will also face high prices for steel, copper and aluminum in the second half of the year.
Despite chip shortages, Daimler’s second-quarter revenue rose 44% to 43.5 billion euros ($ 51.2 billion). Earnings before interest and taxes rose to € 5.19 billion, the company said, confirming preliminary data released last week.
Sales of Mercedes-Benz cars in the second quarter increased by 27%, in Europe – by 54%. After a sharp rise in late 2020 and in the first quarter of the current Mercedes sales in China, the largest market, grew by only 5.8% in the second quarter. In April, Daimler predicted Mercedes would be more profitable than ever, thanks to resurgent demand for cars at the height of the pandemic. At the time, the company raised its forecast for the annual sales profitability of its passenger cars and vans division from 10% to 12%, rather than from 8% to 10%.
The Stuttgart-based manufacturer said a plan to spin off its large truck division is nearing completion and should be closed by the end of the year.
On Thursday, Mercedes will brief investors on its plans for battery technology and its growing line of electric vehicles.
BMW said on Tuesday that nearly all of its German factories were affected by a shortage of semiconductors, which currently prevents the company from completing production of about 10,000 vehicles. Volkswagen and Stellantis warned that the problem could affect profits later this year.
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