The global chip shortage will continue into the second half of 2021.
Mercedes-Benz will cut output due to the shortage.
The lack of semiconductors on a global scale is continuing to ravage output for automakers. Daimler’s Mercedes-Benz is predicting that the second half of 2021 will eat up whatever early gains were made this year. Instead of growth in 2021, sales are likely going to flat in relation to 2020.
On top of the global chip shortage, Daimler is dealing with high steel, copper, and aluminium pricing. These issues will all but completely killed Benz’s sales gains so far this year. In the second quarter, they rose by 27% with a 54% jump in Europe alone, according to Automotive News.
“The entire industry is currently struggling with longer delivery times, which unfortunately also affect our customers,” CEO Ola Kallenius said. “We are doing what we can to minimize the impact.”
The initial forecast by Mercedes-Benz showed that they were expecting to be more profitable than they’d been in many years. Increases in demand late last year and in the first half of 2021 led them to increase projections for 2021.
