Mercedes-Benz expects sales to be steady in fourth quarter despite chip crisis

Mercedes-Benz is expecting its sales to stabilise in the fourth quarter and is aiming to generate double-digit returns this year despite disruptions from the ongoing global semiconductor shortage, Bloomberg reported.

File photo used for representational purpose. (REUTERS)
File photo used for representational purpose.

Though the chip supply shortage has gotten worse by recent factory shutdowns in Malaysia, Daimler chief financial officer Harald Wilhelm said in an interview that demand for Mercedes luxury cars remains strong in China, Europe and North America. “We currently anticipate a more normal sales volume in the fourth quarter, probably on the level of the first or second quarter, but still far below what we’ve previously planned for," Wilhelm was quoted in the report. The unit is still targeting an operating profit margin of between 10 per cent and 12 per cent for this year.

The CEO of the company Ola Kallenius earlier informed that the shortage will result in a significant sales decline in the current quarter and also warned about the supply issues that may not entirely disappear until next year.

Also Read : After EQC success, Mercedes may drive in EQE and EQB electric vehicles to India

While the semiconductor shortage has forced automakers to pause or reduce their production, the companies have now started to prioritising their most profitable cars. Following this move, Mercedes-Benz has reached sales margins that have not been recorded in past years. Wilhelm noted that the automaker hence intends to maintain the current level of profit even as some costs such as travel expenses are bound to increase once the pandemic eases.

Also Read : Will chip crisis plague auto industry for years? VW, BMW, Daimler fear so

Kallenius also informed that the brand made progress in lowering the break-even point. “We have the firm intention to keep our focus on cost discipline and prove that we can sustain the current margin level," he added.

First Published Date: 16 Sep 2021, 19:00 PM IST
Shopping Bag Shop Now
5% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 94 Rs. 99
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
4% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Musk After Smoke (7.5g)
Rs. 95 Rs. 99
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 349

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.