Daimler Trucks producing far lower than it may promote as a consequence of chip scarcity, CEO says

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BERLIN, Oct 5 (Reuters) – Daimler (DAIGn.DE) Trucks CEO Martin Daum stated the truckmaker, set to spin-off from Daimler in December, will undoubtedly promote lower than it may within the coming 12 months as chip shortages hamper manufacturing.

“We will certainly be delivering less than we could have sold, and that also applies to next year,” he stated at a roundtable with journalists on Tuesday, echoing current warnings from rivals like Traton (8TRA.DE) that income may fall within the second half.

“It’s a fight over every chip,” Daum stated.

While passenger automobile producers like BMW (BMWG.DE) or Daimler can enhance costs to offset chip losses, truckmakers don’t have this flexibility, he stated.

Still, the corporate has dedicated to a 15% fixed-cost discount from 2019 ranges by 2025, and cuts are “well underway”, he stated. A concrete replace can be offered on the firm’s Capital Markets Day on Nov. 11.

Reporting by Victoria Waldersee; Editing by Maria Sheahan

The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin, Germany, April 5, 2018. REUTERS/Hannibal Hanschke