Mercedes-Benz CEO "Semiconductor Crisis to Last Until 2023"

Ola K?llenius, CEO of Mercedes-Benz (Photo by Bloomberg)

[Asia Economy Reporter Yujin Cho] Ola K?llenius, CEO of Mercedes-Benz, stated that the global semiconductor supply crisis is more severe than expected and predicted that the shortage will continue through 2023.

On the 5th (local time), CEO K?llenius warned, "The global semiconductor chip shortage may not end next year," adding, "The situation could last until 2023."

At a press briefing ahead of the IAA Motor Show held in Munich, Germany, CEO K?llenius said, "Semiconductor suppliers have mentioned structural issues related to demand," and added, "We hope this situation will impact until the fourth quarter and then begin to ease next year."

Mercedes-Benz suffered a significant blow as COVID-19 resurged in Malaysia, where it operates semiconductor chip testing and packaging factories.

In Malaysia, home to global semiconductor companies such as Infineon, NXP, and STMicroelectronics, the spread of the Delta variant has led factories to repeatedly halt production lines, intensifying the supply shortage.

Daimler, Mercedes-Benz's parent company, announced last week that Mercedes-Benz's third-quarter sales would slightly decrease due to the semiconductor shortage.

Earlier, Japan's Toyota also predicted that the semiconductor supply shortage would continue into next year. Toyota expects to reduce this month's production by about 40% from the originally planned volume due to the semiconductor shortage.

Toyota has suspended production lines at its main plants, including Takaoka in Toyota City, Aichi Prefecture, for several weeks starting early this month.

U.S. General Motors (GM) also decided to cut production last month at eight plants located in the United States, Canada, and Mexico due to semiconductor shortages, and Ford has decided to reduce production of some models, including the popular F-150 pickup truck.

This content was produced with the assistance of AI translation services.