Daimler Vehicles says it faces heavy provide chain stress

Provide chain disruptions are nonetheless ongoing around the globe, and the top of the world’s largest truck maker has warned that components shortages are slowing manufacturing of hundreds of its automobiles.

Daimler Vehicles CEO Martin Daum informed CNBC on Wednesday that the present provide chain squeeze is the worst in his greater than 25-year profession, leading to main bottlenecks within the firm’s suite of manufacturers.

“We face monumental stress on the availability chain,” mentioned Daum, whose vehicles are used for different essential industries akin to logistics and development.

“I’d say it is one of many worst years I’ve ever had in my lengthy profession in trucking, the place we generally have to the touch a truck three, 4 occasions to reattach lacking components,” he mentioned. .

The Mercedes-Benz truck maker mentioned earlier this month that there are indicators that the long-term chip scarcity seems to be easing. Microchips, or semiconductors, are a significant part of contemporary auto manufacturing, and so they fell into quick provide through the top of the Covid-19 pandemic and the ensuing manufacturing facility closures.

However Daum mentioned different components shortages additionally proceed to sluggish manufacturing of the hundreds of vehicles in its worldwide community of factories.

“We now have over 10,000 vehicles in some factories the place one or two components are lacking and we’re in search of these components on this planet,” he mentioned.

Provide chain disruptions are inflicting a manufacturing backlog at Daimler Vehicles, the world’s largest truck maker.

Bloomberg | Getty Photos

Inflationary pressures are additionally taking a toll on Daimler truck manufacturing, as power and uncooked materials prices are actually considerably increased – some value hikes are simpler than others.

“We’re, at this cut-off date, pushing these value will increase on the uncooked materials aspect, so we will at the very least hold our margins in that enterprise,” he mentioned. The corporate can also be negotiating a wage hike for workers.

Nonetheless, the truck maker, whose different manufacturers embody Freightliner, Western Star and Fuso, noticed some brilliant spots. In the US alone, Daum mentioned, it sees a rise in demand for some 200,000 vehicles because it continues to carry provide crunches by way of 2020 and 2021.

“For my part, it makes me optimistic that we cannot see 2023 too unhealthy. And never too unhealthy is a German expression as a result of it might be an excellent 2023,” he mentioned.

Daimler Vehicles reported an 8% year-over-year enhance in gross sales within the first quarter final month, with group income up 17% over the identical interval.

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