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HomeAutomobileDaimler Vehicles says it is dealing with monumental provide chain stress

Daimler Vehicles says it is dealing with monumental provide chain stress

Provide chain disruptions are nonetheless rippling throughout the globe, and the top of the world’s largest truckmaker has warned that shortages of elements are slowing the manufacturing of 1000’s of its automobiles.

Daimler Truck CEO Martin Daum advised CNBC Wednesday that the present provide chain squeeze is among the many worst he is seen in his greater than 25-year profession, leading to main bottlenecks throughout the corporate’s suite of manufacturers.

“We face monumental stress on the provision chain,” mentioned Daum, whose vehicles are used for different important industries corresponding to logistics and building.

“I might say it is one of many worst years ever in my lengthy profession in trucking, the place we generally have to the touch a truck three, 4 instances so as to add the lacking elements,” he added.

The Mercedes-Benz Truck maker said earlier this month that there were signs that a prolonged chip shortage appeared to be easing. Microchips, or semiconductors, are a crucial element of contemporary auto manufacturing, they usually fell into quick provide through the peak of the Covid-19 pandemic and resultant manufacturing facility closures.

However Daum mentioned that shortages of different elements are additionally persevering with to gradual the manufacturing of 1000’s of vehicles throughout its worldwide community of factories.

“We now have, in a few factories, greater than 10,000 vehicles the place one or two elements are lacking and we desperately search the world for these elements,” he mentioned.

Provide chain disruptions are inflicting a manufacturing backlog on the world’s largest truckmaker, Daimler Vehicles.

Bloomberg | Getty Photos

Inflationary pressures, too, are weighing closely on Daimler Truck’s manufacturing, as the prices of power and uncooked supplies at the moment are considerably increased — with some worth hikes simpler to move on than others.

“We’re, in the meanwhile, pushing these worth will increase on the uncooked supplies aspect by means of, so we are able to at the least maintain our margins in that enterprise,” he mentioned. The corporate can be in negotiations over worker pay raises.

Nonetheless, the truck producer, whose different manufacturers embrace Freightliner, Western Star and Fuso, famous some brilliant spots. In the USA alone, Daum mentioned, it sees pent-up demand for some 200,000 vehicles because it continues to meet up with provide shortfalls by means of 2020 and 2021.

“That, for my part, makes me optimistic that we’ll see a not too unhealthy 2023. And never too unhealthy is a German expression for it may very well be 2023,” he mentioned.

Daimler Truck last month reported an 8% year-on-year improve in first quarter gross sales, with group income up 17% over the identical interval.

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