Daimler To Cut Production Over Chip Shortage: Report

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  • The report added that the company will reduce production in Bremen, the Handelsblatt daily reported citing unnamed company sources
  • Recently, Volkswagen and its subsidiary Audi said that they would temporarily cut production and furlough workers as the auto industry suffers from a shortage of vital computer chips

As per a report by Reuters, Daimler will cut production and reduce working hours at a second factory, the Handelsblatt daily reported citing unnamed company sources. The report added that the company will reduce production in Bremen, the newspaper reported. There is a possibilty of the plant being closed in early February for some days.

The report added that the company said that it was cutting hours at its compact car plant in Rastatt. Recently, Volkswagen and its subsidiary Audi said that they would temporarily cut production and furlough workers as the auto industry suffers from a shortage of vital computer chips. It added that Volkswagen told told AFP in a statement that it is sending roughly 8,800 employees at its plant in Emden, northern Germany, into short-time work until 19th January. The plant produces VW’s own-brand Passat model.

Many chip manufacturers switched production to consumer electronics

When car sales fell at the start of the Covid-19 crisis, many chip manufacturers switched production to consumer electronics. This had a higher demand as people were home due to the pandemic. Ford and Toyota said earlier this week they were slowing down or even stopping production at US factories due to the shortfall.

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