Daimler Faces Long-Term Delays in Vehicle Deliveries Due to Ongoing Chip Shortages

Daimler, the parent company of Mercedes-Benz, is facing a challenging period due to high demand and production constraints, causing some customers to wait more than a year for a new car. This predicament is largely attributed to the ongoing semiconductor shortage, a structural issue that is expected to persist in the auto industry throughout 2022.

In an effort to secure competitive costs and high-quality supply for their electric vehicles, Daimler is investing heavily in battery cell production. This strategic move is a significant part of their electric ramp-up, which is a major focus for the company. By the end of the decade, Daimler aims to achieve capacities of over 200 gigawatt hours for battery cell production.

To achieve this ambitious goal, Daimler has partnered with semiconductor manufacturers Bosch and Infineon. This partnership is expected to help Daimler reach the necessary capacities to meet the growing demand for electric vehicles and maintain their competitiveness in the market.

The semiconductor crisis is causing frequent production stoppages for Mercedes-Benz, with some models experiencing waiting times longer than a year. Daimler CEO, Ola Källenius, has stated that the supply of high-quality battery cells at competitive costs is crucial for their electric ramp-up. He also emphasized that Daimler is not waiting for the transformation but driving it, as demonstrated by their investment in battery cell production.

Despite the challenges, Källenius remains optimistic, hoping that the low point was reached in the third quarter, although predicting is difficult. He promised to do everything to shorten waiting times once the situation stabilizes.

However, Daimler is not considering an industrial political solution to build additional chip factories due to the need for billions in investments. Instead, they are prioritizing both profitability and their electric offensive in setting production priorities.

The need for more than 200 gigawatt hours of battery cell capacity by the end of the decade highlights the scale of Daimler's electric vehicle ambitions. This investment in battery cell production is part of their efforts to meet the growing demand for electric vehicles and maintain their competitiveness in the market.

According to major chip manufacturers, the semiconductor shortage will continue in 2022, with the situation potentially easing in 2023. Despite these challenges, Daimler is committed to their electric offensive and aggressive growth strategy, demonstrating a resilience that is emblematic of the company's long-standing reputation for innovation and quality.