Daimler Trucks states it’s dealing with massive supply chain pressure

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Daimler Trucks says it's facing enormous supply chain pressure

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Supply chain interruptions are still rippling around the world, and the head of the world’s biggest truck maker has actually cautioned that parts scarcities are slowing the production of countless its cars.

Daimler Truck CEO Martin Daum informed CNBC on Wednesday that the existing supply chain capture is amongst the worst he’s seen in his more than 25- year profession, leading to significant traffic jams throughout the business’s suite of brand names.

“We are facing enormous pressure on the supply chain,” stated Daum, whose trucks are utilized for other important markets such as logistics and building and construction.

“I would say it’s one of the worst years ever in my long career in trucking, where we sometimes have to touch a truck three, four times to add the missing parts,” he included.

The Mercedes-Benz Truck maker stated previously this month that there were indications that an extended chip scarcity seemed alleviating. Microchips, or semiconductors, are an important part of modern-day automobile production, and they fell under brief supply throughout the height of the Covid-19 pandemic and resultant factory closures.

But Daum stated that scarcities of other parts are likewise continuing to slow the production of countless trucks throughout its worldwide network of factories.

“We have, in a couple of factories, more than 10,000 trucks where one or two parts are missing and we desperately search the world for those parts,” he stated.

Supply chain interruptions are triggering a production stockpile at the world’s biggest truckmaker, Daimler Trucks.

Bloomberg|Getty Images

Inflationary pressures, too, are taxing Daimler Truck’s production, as the expenses of energy and basic materials are now considerably greater– with some rate walkings much easier to hand down than others.

“We are, at the moment, pushing those price increases on the raw materials side through, so we can at least hold our margins in that business,” he stated. The business is likewise in settlements over worker pay raises.

Still, the truck producer, whose other brand names consist of Freightliner, Western Star and Fuso, kept in mind some intense areas. In the United States alone, Daum stated, it sees bottled-up need for some 200,000 trucks as it continues to overtake supply deficiencies through 2020 and 2021.

“That, in my opinion, makes me optimistic that we will see a not too bad 2023. And not too bad is a German expression for it could be a good 2023,” he stated.

Daimler Truck last month reported an 8% year-over-year boost in first-quarter sales, with group earnings up 17% over the exact same duration.

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