Daimler Truck CEO states he’s more worried about chips than Covid

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A Mercedes-Benz extremely truck leaves the Daimler factory in Sindelfingen, Germany, 08 December 2015.

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Daimler Truck CEO Martin Daum exposed Friday that he’s more anxious about the worldwide semiconductor scarcity than he has to do with the financial effect of the coronavirus pandemic.

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

Daum stated he does not see Covid as a significant danger to Daimler Truck at the minute. “The risks are the supply situation, especially on the semiconductor side,” he stated.

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

“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 having a hard time to fulfill need for its semiconductors, according to the business’s CEO, ReinhardPloss “The automotive, but also other verticals, are very tight currently on supply,” Ploss informed CNBC’s “Squawk Box Europe” on Wednesday.

“We are far away from matching the demand,” he stated, including that need is continuously increasing since there’s a stockpile developing. “The problems are rising and piling up over time.”

Infineon opened a brand-new 1.6 billion euro ($ 1.8 billion) semiconductor factory in Villach, Austria, in September as part of an effort to fulfill need for its items. It stated chips from the plant will mostly be utilized to fulfill need from the automobile market, information centers and renewable resource generation of solar and wind power.

Analysts have stated that the approach electrical cars isn’t assisting the semiconductor scarcity as they can need as much as 10 times as lots of chips as conventional cars.

But electrical cars being produced by Daimler Truck do not need “significantly higher” varieties of semiconductors compared to internal combustion engine equivalents, Daum stated.

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