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Daimler Trucks producing far less than it could sell due to chip shortage, CEO says By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – The Daimler logo was seen in front of the annual shareholders meeting at Daimler Berlin on April 5, 2018. REUTERS/Hannibal Hanschke

BERLIN, (Reuters) – Daimler (OTC) Martin Daum, CEO of Trucks, stated that truckmaker Daimler will spin off in December and sell less trucks in coming years due to chip shortages.

He said that “we will definitely be delivering less that we could have sold”, and this was also true for next year. This statement came after a roundtable discussion with journalists Tuesday. It echos recent warnings by Traton, a competitor, that profit margins could drop in the second quarter.

Daum declared, “It’s an argument over every chip.”

Truckmakers, however, are limited in their ability to increase the prices of passenger vehicles like BMW and Daimler, said he.

The company still has a commitment to reduce fixed costs by 15% from the 2019 level by 2025. He said that cuts were “well underway”. On Nov. 11, the company will provide a concrete update at its Capital Markets Day.

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