Daimler shakes off chip crunch

Daimler reported a higher quarterly profit on Friday (October 29).

That was despite a 30% drop in Mercedes-Benz unit sales due to a global semiconductor chip shortage.

The German premium carmaker said it should meet its 2021 profit targets.

It expects chip supplies to improve in the fourth quarter.

But warned the shortage of semiconductors will remain an issue next year.

The chip crunch has pummeled the auto industry for much of this year.

A number of carmakers shuttered plants as the global health crisis took hold last year.

They also found themselves competing against the sprawling consumer electronics industry for chip supplies.

And supply chain snarls from a fire at a chip-making plant in Japan also hurt.

Daimler said it focused on more profitable models including in its Maybach and performance AMG brands.

It expects Mercedes-Benz to post slightly lower sales in 2021.

Daimler's carmaker posted a quarterly operating profit of $3 billion, up 18% for the same period in 2020.

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