Daimler Cuts Hours For Up To 18,500 Workers Over Chip Shortage
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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.
Questions & Answers
Q.Which specific Daimler plants will be affected by the production halt due to the chip shortage?
Which specific Daimler plants will be affected by the production halt due to the chip shortage?
Production will be halted at Daimler's plants in Bremen and Rastatt. This move is part of the company's response to the global semiconductor chip shortage affecting car manufacturing.
Q.When is the temporary production halt at Daimler's plants scheduled to begin?
When is the temporary production halt at Daimler's plants scheduled to begin?
The production halt at the affected Daimler plants is scheduled to take effect from April 23. Initially, it is planned to last for one week, impacting manufacturing operations.
Q.What is the primary reason for the global semiconductor chip shortage impacting carmakers?
What is the primary reason for the global semiconductor chip shortage impacting carmakers?
The shortage is due to carmakers, who shut plants during the COVID-19 pandemic last year, now competing with the consumer electronics industry for chip supplies. Cars have become increasingly reliant on these components.
Q.Will employees at the affected plants be out of work during the production halt?
Will employees at the affected plants be out of work during the production halt?
No, staff will not be out of work. While production is halted, employees will continue to work on special projects. Their working hours will be shortened during this period.
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