Monday, July 15, 2024

Daimler Trucks forced to limit production of electric trucks due to severe chip shortage

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Daimler Truck, the world’s biggest truck maker, said it would limit production at some of its plants in Germany due to a shortage of semiconductors.

Daimler Truck said it would suspend production in several areas at its Mannheim site this March and at its Gaggenau plant next April. However, they did not provide more specific causes except for the chip crisis.

According to the chief executive of Daimler Trucks, the cost of making electric trucks will be “perpetually higher” than trucks with internal combustion engines. This was also reported by the Financial Times reported on Sunday, March 27. This is also due to the Russian invasion of Ukraine which made the price of raw materials to be imported increased.

Martin Daum, chief executive of Daimler Truck, said the government needed to help make a difference in the cost of the additives used in battery-powered vehicles. Without any subsidy, the price of (electric) trucks will always be higher than trucks (internal combustion engines),” he said.

This is an obstacle for truck manufacturers to meet the target of making environmentally friendly cars, because trucks with internal combustion engines are known to have quite high pollution.

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