Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Daimler sees Q3 hit to Mercedes sales from chip shortage

Stock MarketsSep 02, 2021 09:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An employee at a Mercedes-Benz dealership, wearing a protective mask, prepares a vehicle, amid the coronavirus disease (COVID-19) outbreak in Brussels, Belgium May 26, 2020. REUTERS/Yves Herman/File Photo

By Victoria Waldersee

BERLIN (Reuters) -German luxury carmaker Daimler (OTC:DDAIF) said on Thursday it expected significantly lower third-quarter sales at its Mercedes unit due to a global semiconductor shortage, becoming the latest in a string of automakers to take a hit to revenues.Automakers from U.S. group General Motors (NYSE:GM) to India's Mahindra have slashed output and sales forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence in key Asian semiconductor production hubs.

"With the plant closings at semiconductor suppliers in Malaysia and elsewhere, the challenge has now become even greater, so that our sales in the third quarter will probably be noticeably below the second quarter," Daimler CEO Ola Kaellenius told the Automobilwoche weekly in an interview.

Kaellenius did not specify how production would be affected by the shortage. The carmaker cut working hours in July at plants in Germany and Hungary because of lacking chip supply. Daimler was not immediately available for comment.

General Motors also said on Thursday chip shortages and COVID-19 restrictions were delaying production, with the company resorting to repairing and shipping unfinished vehicles to dealers.

Still, Kaellenius said he was confident Daimler was better prepared than before the pandemic for supply chain shocks. "We have made our business significantly more flexible and watertight," he said, adding customers were used to waiting for highly sought-after products.

Daimler has extended contracts on its leasing services to ease the concerns of customers waiting for their orders of new cars to arrive, the CEO said.

Daimler left its profit margin outlook for the year unchanged in July after reporting better-than-expected second quarter earnings. Like General Motors, it said at the time it was preparing unfinished vehicles as far as it could to be ready to slot in chips upon arrival.

Toyota said in September it was slashing production by 40% due to the lack of chips. Ford reported on Wednesday it was cutting pickup truck production. Renault (PA:RENA) last week extended stoppages at three Spanish plants until the end of the year.

Consultants J.D. Power and LMC Automotive also warned last week that U.S. auto retail sales were likely to have fallen sharply in August, with dealers holding just 942,000 vehicles in inventory, down from 3 million two years ago.

Kaellenius refrained from predicting an end to the shortage, pointing out that supply strains such as the lockdowns in Malaysia were impossible to foresee. "What is important is that demand for cars is there," he said. "At some point the chip problem will also be solved."

Daimler is due to report third quarter earnings on Oct. 29.

Daimler sees Q3 hit to Mercedes sales from chip shortage
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email