Daimler expects to recover production lost to chip shortage amid bullish outlook for 2021

Daimler expects to recover production lost to chip shortage amid bullish outlook for 2021

Daimler stated bottlenecks inflicting a scarcity of semiconductor chips will harm its gross sales principally within the first quarter, however it should make up for misplaced manufacturing by the tip of 2021.

A lot of the auto business has struggled to keep up manufacturing ranges due to the chip scarcity.

The automaker additionally confirmed its preliminary monetary outcomes for 2020 and stated financial situations in it key markets ought to proceed to return to regular and that it expects no additional setbacks because of the coronavirus pandemic.

The worldwide financial system is anticipated to get better strongly as vaccinations combating the unfold of corona virus take impact, Daimler stated Thursday in a statement.

It plans to raise its dividend to 1.35 euros ($1.63) from 0.90 euros final 12 months, when the pandemic shuttered factories and automakers battled probably the most difficult occasions in many years.

“We’re assured that we will preserve optimistic momentum if present market situations prevail,” CEO Ola Kallenius stated within the assertion.

Group gross sales, income and working revenue will likely be “considerably larger,” the corporate stated.

Because of price financial savings and a faster-than-expected restoration within the auto sector, Daimler stated final month that its group earnings earlier than curiosity and taxes (EBIT) for 2020 got here to six.60 billion euros ($7.95 billion).

“The 12 months 2020 was a stress take a look at for almost each firm in virtually each business,” Kallenius stated. “The Daimler group mastered this take a look at very nicely.”

Like its German rivals BMW and Volkswagen, Daimler benefited from a rebound in China following COVID-19 lockdowns. Shoppers snapped up luxurious autos and helped save the 12 months for premium manufacturers like Mercedes and Audi.

“China had a exceptional restoration,” Kallenius stated in a web based video convention.

Daimler stated it expects group income and working revenue for 2021 to rise greater than 7.5 p.c, with an adjusted margin from its Mercedes vehicles and van enterprise of between eight p.c and 10 p.c.

Kallenius stated gross sales of EVs in 2021 may double as a proportion of Daimler’s total gross sales.

Gross sales of plug-in hybrids and fully-electric autos made up 7.four p.c of Mercedes-Benz automobile gross sales in 2020, up from 2 p.c  in 2019.

Daimler stated this month it deliberate to spin off Daimler Truck, the world’s largest truck and bus maker, in what’s set to be certainly one of Europe’s largest listings this 12 months, as the corporate seeks to extend its investor enchantment as a centered electrical, luxurious automobile enterprise.

Whereas the worst of the pandemic disruptions have handed, obstacles stay for the automaker. Demand in Europe fell to a file low in January and a world scarcity of semiconductor chips is throttling output.

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