Daimler braces for ‘significant’ hit to Mercedes revenue in Q3

STUTTGART, Germany — Daimler expects significantly lessen gross sales of Mercedes automobiles by the stop of September because of to the ongoing chip shortage.

“With the plant closures at semiconductor suppliers in Malaysia and elsewhere, the obstacle has now turn into even bigger, so our revenue in the third quarter are possible to be significantly reduced than in the 2nd quarter,” CEO Ola Kallenius explained to Automotive News Europe sister publication Automobilwoche.

In modern months and months, Mercedes crops have been frequently shut down due to a lack of sections.

Among the the car or truck assembly plants hit by the disruption is Manufacturing facility 56 in Sindelfingen, Germany, in which the Mercedes’ flagship sedans, the S-Course and EQS electrical vehicle are developed.

Kallenius mentioned the chip shortage is extending shipping and delivery periods that have been now lengthy for the reason that of the COVID-19 pandemic.

He declined to forecast how extensive the semiconductor crisis will have an impact on the automaker’s enterprise.

“Longer-time period forecasts are genuinely very difficult,” Kallenius reported. “If a governing administration orders a lockdown at some ingredient vegetation, as in Malaysia, then parts develop into unavailable overnight. No provider can foresee that, and of system neither can we.”

“What is significant is that desire for automobiles is there,” he mentioned. “At some place the chip dilemma will also be solved.”

Kallenius said he was confident the enterprise was better prepared than right before the pandemic for offer chain shocks.

“We have built our company substantially additional versatile and watertight,” he stated, incorporating that consumers ended up utilized to waiting around for really sought-following solutions.

Daimler left its gain margin outlook for the yr unchanged in July immediately after reporting much better-than-envisioned 2nd-quarter earnings.

It is not the only automaker to alert of dampened revenues in the 3rd quarter due to chip provide disruptions. Rivals like Volkswagen, Toyota and Geely have flagged in the latest months the lack, as effectively as resurgent COVID-19 scenarios, which could threaten profits in coming months.