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World NewsDaimler Truck CEO says he's more concerned about chips than Covid

Daimler Truck CEO says he’s more concerned about chips than Covid

A Mercedes-Benz tremendous lorry leaves the Daimler manufacturing facility in Sindelfingen, Germany, 08 December 2015.

Daniel Maurer | Getty Images

Daimler Truck CEO Martin Daum revealed Friday that he’s more anxious about the worldwide semiconductor scarcity than he’s about the financial impression of the coronavirus pandemic.

“I’m more concerned about semiconductors than Covid at the moment,” Daum instructed CNBC’s “Street Signs Europe.” “Trucks are necessary to keep our system alive, even in the depth of the crisis.”

Daum mentioned he would not see Covid as a serious danger to Daimler Truck for the time being. “The risks are the supply situation, especially on the semiconductor side,” he mentioned.

The government mentioned that truck producers usually “estimate the market” after which set targets for market share. “Then you have a feeling for what your production quota is,” Daum mentioned.

“These days, you call your semiconductor suppliers, ask how many you can get and that’s basically your production program because you know every single truck you build will sell.”

Automotive chipmaker Infineon is struggling to satisfy demand for its semiconductors, based on the corporate’s CEO, Reinhard Ploss. “The automotive, but also other verticals, are very tight currently on supply,” Ploss instructed CNBC’s “Squawk Box Europe” on Wednesday.

“We are far away from matching the demand,” he mentioned, including that demand is continually growing as a result of there is a backlog increase. “The problems are rising and piling up over time.”

Infineon opened a brand new 1.6 billion euro ($1.8 billion) semiconductor manufacturing facility in Villach, Austria, in September as a part of an effort to satisfy demand for its merchandise. It mentioned chips from the plant will primarily be used to satisfy demand from the automotive business, knowledge facilities and renewable power era of photo voltaic and wind energy.

Analysts have mentioned that the transfer towards electrical autos is not serving to the semiconductor scarcity as they will require as much as 10 instances as many chips as conventional autos.

But electrical autos being manufactured by Daimler Truck don’t require “significantly higher” numbers of semiconductors in comparison with inner combustion engine equivalents, Daum mentioned.

“I would say it’s less than 10% so that’s not the decisive point,” he mentioned.


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