Mercedes cuts production in Germany, Hungary on chip shortages

Automotive Industry

Source: Automotive News Europe, 2021-07-27

Daimler is reducing Mercedes-Benz production at three plants in Germany and temporarily halting output in its factory in Hungary due to a shortage of semiconductors.

The automaker has introduced short-time working for employees at the Mercedes plants in Sindelfingen, Rastatt and Bremen in Germany. In Rastatt, production will be reduced until the end of next week. In Sindelfingen and Bremen output will be cut until the end of the week. The Kecskemét factory will stop production for three weeks until mid-August.

Daimler said it could not give a prognosis about when the supply shortage of certain semiconductor components will be cleared.

"The situation is still volatile and we are permanently reevaluating what this means for Mercedes-Benz production," a Daimler spokesperson told Automotive News Europe.

In Sindelfingen, production has only been stopped in some areas and the automaker will continue to build as normal highly profitable large luxury cars. At Sindelfingen's Factory 56 plant  which builds the S-Class sedan, Mercedes-Maybach S-Class and the EQS full-electric sedan, production is not impacted.

"The Mercedes-EQ electric offensive remains a top priority," the spokesperson said.

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