Daimler CEO says automakers could face chip shortage in 2023

MUNICH, Sept. 5 (Reuters) – Growing demand for semiconductor chips means the auto industry could struggle to find enough throughout next year and into 2023, although the shortage is expected to be less serious by then, said the CEO of Daimler AG (DAIGn.DE) on Sunday.

Automakers, forced by the COVID-19 pandemic to close factories last year, face stiff competition from the sprawling consumer electronics industry for chip shipments, affected by a series of supply chain disruptions during the pandemic.

Cars have become increasingly dependent on chips – for everything from computerized engine management for better fuel economy to driver assistance functions such as emergency braking.

“Several chip vendors have referred to structural issues with demand,” Ola Källenius told reporters at a panel discussion ahead of the IAA Munich motor show. “It could influence 2022 and (the situation) could be more relaxed in 2023.”

The IAA show is the world’s first major automotive industry event since the COVID-19 pandemic. Read more

Daimler said last week that it expected a significant drop in third-quarter sales of its Mercedes unit due to a global semiconductor shortage, becoming the latest in a series of automakers to have affected their income. Read more

Automakers from US group General Motors (GM.N) to India’s Mahindra (MAHM.NS) and Japan’s Toyota (7203.T) cut production and sales forecasts due to scarcity of chip supplies , aggravated by a resurgence of COVID-19 in the main Asian semiconductor production centers.

Källenius said on Sunday that despite the continuing chip shortage, the German automaker hopes its own semiconductor offering will improve in the fourth quarter.

As part of its plans to electrify its model range, Mercedes-Benz will present several fully electric vehicles at the Munich Motor Show.

These will include world premieres for the EQE, the first fully electric for the automaker’s high-performance AMG brand and a concept car for its luxury brand Maybach. The company will also launch a fully electric SUV, the EQB, in the European market.

In July, Daimler said it would spend more than 40 billion euros ($ 47.5 billion) by 2030 to take on Tesla Inc (TSLA.O) in an all-electric market, but warned that the change technology would lead to job losses. Read more

Describing its strategy for an electric future, the German automaker said it will build eight battery factories as it ramps up production of electric vehicles (EVs) and that from 2025 all new platforms to vehicles will only manufacture EVs.

Källenius said the company’s plan to split up its Daimler Trucks trucking unit by the end of 2021 remains on track.

($ 1 = 0.8416 euros)

Reporting by Nick Carey; Editing by Susan Fenton

Our Standards: Thomson Reuters Trust Principles.