According to the CEO of Daimler Chip Shortage Will Continue Until 2023

According to the CEO of Daimler AG (DE:DAIGn), the chip shortage will continue until 2023. Källenius said on Sunday that rising demand for semiconductor chips means the auto industry may struggle to find enough resources next year and into 2023, but the shortage will be less severe by then. Automakers, who were forced to close factories due to the Covid-19 pandemic last year, face stiff competition from the growing consumer electronics industry for chip deliveries that have been affected by a series of supply chain disruptions during the pandemic. Cars have become increasingly dependent on chips for everything from the computer management of engines for better fuel economy to driver assistance features such as emergency braking. Ola Källenius spoke to reporters ahead of the Munich IAA (NYSE:IAA) Auto Show, said, "A few chip suppliers are citing structural problems with demand. This could impact 2022 and rebound in 2023." Daimler (OTC:DDAIF) said last week that it expects third-quarter sales of its Mercedes unit to drop significantly due to global semiconductor shortages. Automakers, from the US General Motors group (NYSE:GM) to India's Mahindra and Japan's Toyota, have cut their production and sales forecasts due to dwindling chip supply, further exacerbated by the resurgence of Covid-19 in Asia's key semiconductor manufacturing centers. Källenius said on Sunday that despite the ongoing chip shortage, the German automaker hopes its own semiconductor supply will increase in the fourth quarter. Outlining its strategy for an electric future, the German automaker said it will build eight battery plants while ramping up electric vehicle (EV) production, and that from 2025 all new vehicle platforms will produce EVs only. Källenius stated that the company's plan to phase out its truck unit Daimler Trucks by the end of 2021 is also on track.