Daimler CEO Hopes to Stabilize Supply Chain This Quarter

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Ola Kaellenius, president  of Daimler AG, attends the presumption    of the caller   Mercedes-Benz S-Class astatine  the Daimler accumulation   works  successful  Sindelfingen adjacent   Stuttgart, Germany connected  Sept. 2, 2020. (Ralph Orlowski/Reuters)

Ola Kaellenius, president of Daimler AG, attends the presumption of the caller Mercedes-Benz S-Class astatine the Daimler accumulation works successful Sindelfingen adjacent Stuttgart, Germany connected Sept. 2, 2020. (Ralph Orlowski/Reuters)

DETROIT—Daimler AG Chief Executive Ola Kaellenius told Reuters connected Friday the automaker hopes to stabilize its supply chain for semiconductors during this quarter, but expects existent alleviation from shortages of chips volition not get until 2023.

Kaellenius, who is visiting Mercedes operations successful the United States, said accumulation of Mercedes vehicles during the 4th fourth volition beryllium little than a twelvemonth ago, which was an unusually beardown 4th arsenic the institution began recovering from pandemic shutdowns.

“We cannot person 100 percent certainty” astir supplies of semiconductors, Kaellenius said. COVID-19 related shutdowns this summertime astatine Malaysian plants that process semiconductors acceptable backmost the car industry’s efforts to retrieve accumulation mislaid earlier successful the year.

“We anticipation to beryllium capable to stabilize the concern successful the 4th quarter, and instrumentality that to the adjacent level successful 2022,” helium said. However, helium said, large spot producers are saying restrictions successful proviso could proceed into 2023.

“We person to enactment flexible,” Kaellenius said.

Daimler is managing supply-chain disruptions connected apical of readying for a divided of the institution into a standalone luxury conveyance company, Mercedes-Benz, and a abstracted commercialized motortruck business. Mercedes is accelerating its displacement to an all-electric lineup by 2030.

Mercedes is launching an electrical top-of-the-line sedan, the EQS, and is preparing to motorboat accumulation of an electrical EQS SUV astatine its mill successful Alabama that volition spell connected merchantability adjacent year.

“We are trying to velocity up the transition” to electrical vehicles, Kaellenius said.

The EQS sedan and SUV should beryllium “profitable from the connection go” successful the U.S. market, helium said.

By Joseph White

Reuters

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