Mercedes braces for big Q2 shortfall as global chip crisis roils the luxury car market – By Christian Hetzner (Fortune) / April 23 2021
Mercedes-Benz parent Daimler AG may not be able make up for second-quarter shortfalls in production arising from freak events at its key chip suppliers that exacerbated a global semiconductor shortage.
Finance chief Harald Wilhelm said second-quarter vehicle sales and output might be weaker than in the first three months of the year as German assembly lines tasked with building the popular Mercedes GLA and GLC crossovers grind to a complete halt next week for lack of parts.
The cautious outlook for production took the shine off the company’s decision to hike the forecast for full-year profitability at its core passenger car and vans division. Operating returns are now expected to hit 10% to 12% instead of the 8% to 10% projection only two months ago following a blowout first quarter.
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