Premium car maker Mercedes-Benz Daimler AG, whose revenues in the second half of the year will be under pressure from high prices for steel, copper and aluminum, said that the problem of the global chip shortage will persist until the end of 2022.
CFO Harald Wilhelm told investors that while the chip shortage will last until 2022, it will be less severe than this year.
The shortage of chips and processors stemmed from the fact that demand for cars surged during the global economic recovery from the coronavirus crisis, which led to higher prices for new and used cars as stocks at dealerships dwindled. >
Sales of Mercedes-Benz vehicles jumped 27% in the second quarter, with 54% in Europe, Daimler's second market after China. Following sharp growth in late 2020 and in the first quarter, Mercedes-Benz sales in China posted a modest 5.8% growth in the second quarter.
The company said it expects annual car sales to be in line with 2020, after previously predicting that car sales this year will be significantly higher than last year. Daimler said its Truck and Bus Division's adjusted profitability will be 6% to 7% by 2021, below its previous forecast of 6% to 8%.