Daimler CEO says carmakers could confront chip lack into 2023

Daimler CEO says carmakers could confront chip lack into 2023

Soaring demand for semiconductor chips implies the auto industry could battle to source enough of them all through the next year and into 2023, however the lack ought to be less serious by then, at that point, Daimler AG’s (DAIGn.DE) CEO said on Sunday.

Carmakers, constrained by the COVID-19 pandemic to close down plants last year, face firm competition from the sprawling consumer electronics industry for chip deliveries, hit by a series of supply chain interruptions during the pandemic.

Vehicles have become progressively reliant upon chips – for everything from computer management of engines for better fuel economy to driver-assistance features, for example, crisis slowing down.

“Several chip suppliers have been referring to structural problems with demand,” Ola Källenius told reporters during a roundtable event ahead of the Munich IAA car show. “This could influence 2022 and (the situation) may be more relaxed in 2023.”

The IAA show is the main significant motor industry event worldwide since the COVID-19 pandemic.

Daimler said last week it expected fundamentally lower third-quarter sales at its Mercedes unit because of a global semiconductor lack, becoming the most recent in a string of automakers to make an effort to incomes.

Automakers from U.S. group General Motors (GM.N) to India’s Mahindra (MAHM.NS) and Japan’s Toyota (7203.T) have cut output and sales’ forecasts because of scant chip supplies, aggravated by a COVID-19 resurgence in key Asian semiconductor production hubs.

Källenius said on Sunday that regardless of the ongoing chip deficiency, the German carmaker trusts its own supply of semiconductors will work on in the final quarter.

As part of its plans to electrify its model range, Mercedes-Benz will flaunt a few completely electric vehicles at the show in Munich.

These will incorporate global premiers for the EQE, the first completely electric for the premium carmaker’s high-performance AMG brand and a concept car for its luxury Maybach brand. The organization will likewise present a completely electric SUV, the EQB, to the European market.

In July Daimler said it will spend in excess of 40 billion euros ($47.5 billion) by 2030 to take on Tesla Inc (TSLA.O) in an all-electric market, however cautioned the change in technology would prompt job cuts.

Illustrating its procedure for an electric future, the German carmaker said it will assemble eight battery plants as it inclines up electric vehicle (EV) production and from 2025 all new vehicle platforms will just make EVs.

Källenius said the organization’s plan to spin off its shipping unit Daimler Trucks before the finish of 2021 remaining parts on target.