Chip Shortage Forcing Daimler to Stall Production
In today’s update on the semiconductor shortage, we learn that Daimler has elected to place over 18,000 Mercedes-Benz employees on reduced schedules. With an insufficient number of chips, the manufacturer cannot produce vehicles with sufficient reliability and has decided to ease off until resupplies are more predictable. Unfortunately, that’s unlikely to happen for at least a few months — forcing Mercedes to roll with the punches much like Subaru, General Motors, and Ford. Though this is a problem that’s impacting the entirety of the automotive industry.
Daimler made its announcement on Wednesday, stating that facilities in Bremen and Rastatt will be the first (and hopefully only) plants affected by the stall.
The manufacturer explained that while all employees will likely be subjected to scheduling changes, the nature of the chip shortage makes things difficult to predict. There’s a chance that not everyone will need to see a big drop in hours, but also one where German employees are forced to endure prolonged shutdowns. For now, the strategy involves a week-long production stall with staff allowed to continue work on special projects — beginning on April 23rd.
Rastatt employs roughly 6,500 workers and is responsible for some of the brand’s smaller vehicles, including the GLA and A-Class. Meanwhile, Bremen has room for over 12,000 people working on the GLC, C-Class, and EQC EV. Due to the nature of the situation, the manufacturer said it could not yet predict what kind of production losses it might endure as a result of the shutdowns and plans on making another announcement next week.