As a result of scarcity of chips, Daimler Vehicles is producing far lower than it might promote, says CEO

© Reuters. FILE PHOTO: The Daimler logo can be seen before the Daimler Annual General Meeting on April 5, 2018 in Berlin. REUTERS / Hannibal Hanschke

BERLIN (Reuters) – Martin Daum, CEO of Daimler (OTC 🙂 Trucks, said the truck maker, which is slated to be spun off from Daimler in December, will undoubtedly sell less than it could in the coming year as chip shortages hamper production .

"We will certainly deliver less than we could have sold, and that also applies to next year," he said at a round table with journalists on Tuesday, reiterating recent warnings from competitors like Traton that profits will be in the second half of the year could sink.

"It's a fight for every chip," said Daum.

While car manufacturers like BMW or Daimler can raise prices to compensate for chip losses, truck manufacturers don't have that flexibility, he said.

Still, the company has pledged to cut fixed costs by 15% by 2025 from 2019, and the cuts are "in full swing," he said. There will be a specific update at the company's Capital Markets Day on November 11th.

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