UK Markets closed

Daimler Truck boss says chip supply has tightened further

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
FILE PHOTO: The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin,
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

FRANKFURT (Reuters) - Daimler AG's truck business, the world's largest, has seen the supply of crucial chips tighten further in recent weeks, the division's chief executive said in a Frankfurter Allgemeine Sonntagszeitung report.

"Since the summer months the situation has intensified again," Martin Daum told the weekly newspaper, adding this had affected production in Germany and the United States.

Excerpts of the interview were made available on Friday, ahead of its publication on Sunday.

Daum said that order books were filled but due to the shortage which was hit all major carmakers, stockpiles had gone up massively.

"There are significant inventories of already produced vehicles where essential parts are lacking. Those vehicles are badly needed by our customers. We would like to deliver but we are waiting for the parts."

Daum said the tightening of supply could have a major impact on unit sales in the third quarter, adding he saw no signs of a fast recovery and the issue would stay with the sector for a while.

Daimler Truck Holding AG will be spun off from Daimler later this year, with shareholders set to vote on the move at an extraordinary general meeting on Oct. 1. Daimler, in turn, will be renamed Mercedes-Benz Group AG.

(Reporting by Christoph Steitz; Editing by Richard Chang)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting