The boss of Mercedes has warned that he does not see the ongoing semiconductor crisis coming to an end this year.
In a stark warning to the industry, Ola Kaellenius, CEO of the German outfit, said that production would continue to be affected throughout 2022.
He also told the Reuters Automotive Europe conference that manufacturers are unlikely to see the shortage stretching into 2023.
His comments come as Mercedes continues to battle high demand, despite production lines being beset with problems.
‘The semiconductor situation is very present and will be a challenge for the industry throughout this year and into next year,’ Kaellenius said.
He later added: ‘We have not seen any signs yet that demand is going south.’
As part of the same speech, the Swedish businessman admitted that carmakers, like Mercedes, would be forced to play a ‘more active role’ throughout their supply chains, once the industry has transitioned to EVs.
He added: ‘We don’t stop at battery cell factories. We have to go through the whole value chain here because there so much is in motion.’
Kaellenius was speaking shortly before the SMMT laid out just how badly production lines issues have affected UK car production this year.
So far, figures are almost 100,000 below where they were at the same point last year, despite some growth in May.