Mercedes boss sees no end in sight for semiconductor shortage with crisis set to stretch into next year

  • Semiconductor crisis will last into 2023, Mercedes boss warns
  • CEO, Ola Kaellenius, says carmakers will soon have to play a ‘more active role’ throughout supply chains
  • Swede says demand has remained high despite struggles in getting cars out of the factory

Time 11:42 am, June 30, 2022

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.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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