Daimler Cuts Hours For Up To 18,500 Workers Over Chip Shortage

Daimler will cut working hours for up to 18,500 employees and temporarily halt production at two plants in Germany due to a shortage of semiconductor chips that has hit global car production, it said on Wednesday.

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

“The situation is volatile, so it is not possible to make a forecast about the impact,” she added.

Daimler, which makes Mercedes-Benz cars, said workers at its plants in Bremen and Rastatt would have their hours shortened.

The global shortage stems from a confluence of factors as carmakers, which shut plants during the COVID-19 pandemic last year

The move will halt production at the factories but allow staff to continue working on special projects. The production halt will take effect from April 23 for one week, initially.

The global shortage stems from a confluence of factors as carmakers, which shut plants during the COVID-19 pandemic last year, compete with the sprawling consumer electronics industry for chip supplies.

Cars have become increasingly dependent on chips – for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

The shortage of chips has hurt vehicle production at carmakers including General Motors Co, Volkswagen AG and Ford Motor Co.

Earlier on Wednesday, automaker Stellantis said it would replace digital speedometers with more old-fashioned analogue ones in one of its Peugeot models, in a fallout from the shortage of semiconductor chips.

Latest articles

Fashion
Levi’s unveils new Icon store at Palladium Mall Mumbai

Sign up for newsletters


Must read

Behind the Buzz
Retail News Asia — Your Daily Fix of What’s Happening in Asian Retail

We’re here to keep you in the loop—every single day. Whether you’re running a small local shop, scaling an online biz, or part of a global brand making moves in Asia, we’ve got something for you.

With 50+ fresh stories a week and 13.6 million readers, Retail News Asia isn’t just another news site—it’s the go-to source for all things retail across the region.
Retail Updates
Fresh updates. Real insights. Delivered daily or weekly—no spam, just retail gold.

Copyright © 2014 -2025 | Retail News Asia