Daimler AG’s chief executive officer cautioned that the global semiconductor shortage may not entirely go away next year and could take until 2023 to be resolved, a view shared by larger German rival Volkswagen AG.

Ola Kallenius, CEO of the Mercedes-Benz maker, delivered the assessment during a press briefing with reporters for this week’s auto show in Munich. Daimler recently cut its annual sales forecast for its car division, projecting deliveries will be roughly in line with 2020, rather than up significantly.

Mercedes has been hit this quarter by factory shutdowns in Malaysia, which in recent years emerged as a major center for chip testing and packaging. Infineon Technologies AG, NXP Semiconductors NV and STMicroelectronics NV are among the key suppliers operating plants in the country.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook