Daimler CEO says carmakers could face chip shortage into 2023

by   |  VIEW 874

Daimler CEO says carmakers could face chip shortage into 2023

Ahead of the Munich IAA car show, the first major global-scale motor industry event since the onset of pandemic outbreak, Stuttgart-based German automotive industry giant Daimler AG Chief Executive Ola Källenius said on Sunday that a soaring demand for semiconductors meant that the global automotive giants would more likely to struggle to cope up with a worsening chip-shortage at least until end-2023, raising an alarming bell for a swathe of automakers, most of which had already been forced to downsize or halt production lines due to a sweeping semiconductor shortage.

Speaking in a roundtable event with the reporters ahead of the Munich IAA Car Show, Kallenius said to the reporters, “Several chip suppliers have been referring to structural problems with demand. This could influence 2022 and (the situation) may be more relaxed in 2023.

Daimler CEO signals chip-shortage is far from over

In point of fact, latest downbeat remarks from Kallenius, the Chief Executive of Mercedes-Benz maker Daimler AG, came forth a week after the Stuttgart-based German carmaker had substantially lowered its third-quarter sales forecast citing a caustic semiconductor shortage, being the latest in a swathe of automakers whose revenues had pummelled drastically over recent quarters.

If truth is to be spoken, a baleful backdrop in supplies of semiconductors for automakers around the globe followed a pandemic-led shutdown of plants last year, however, consumers stuck at home over pandemic associated restrictions had flocked electronics industry, eventually leading to a sharp decline in available raw materials to produce semiconductors.

On top of that, narratives had compounded further following a robust reopening of global economy, as a sweeping decline in auto chips had reportedly spanned into consumer electronics goods industry.