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German automaker Daimler is latest to cut hours due to chip shortage

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thejapannews– Daimler announced on April 21 that it would reduce work hours for its workforce of nearly 18,500 and put a temporary stop to manufacturing at duo Germany-based facilities, in response to the shortage of semiconductor chips that has acutely impacted the manufacturing of automobiles worldwide.

“Currently, there is a worldwide supply shortage of certain semiconductor components,” according to a spokeswoman. “We continue to play things by ear,” she remarked.

“The situation is volatile, so it is not possible to make a forecast about the impact,” she noted.
The German-based firm that assembles Mercedes-Benz models pointed to a reduction in the work hours for employees at Daimler’s Bremen and Rastatt plants.

With this decision, to be implemented April 23 for a seven-day period, manufacturing at the plants will essentially come to a standstill, though work will not be discontinued on special projects.

A combination of factors has led to a worldwide shortage of chips, as car manufacturers, which had closed down their plants in the wake of the COVID-19 crisis in 2020, contend with the extensive electronics industry for stocks.

A greater chip dependence in cars ranges from the computerized engine management to improve fuel economy to components for assisting drivers, including emergency brake mechanisms.

The chip shortage crisis has dealt a major blow to vehicle manufacturing at Volkswagen, Ford and General, among other producers.

On April 21, auto manufacturer Stellantis confirmed its plan to do away with digital speedometers in one of its Peugeot cars and instead install older analogue versions, due to the shortage of chips.