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Wednesday 21 April 2021 5:20 pm

Mercedes maker Daimler to cut hours of 18,500 workers due to chip shortage

By: Edward Thicknesse

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Mercedes maker Daimler today said it would cut the hours of some 18,500 workers at its factories in Germany due to the current shortage of semiconductor chips.
Manufacturing declined for the seventh successive month, hit by the cost-of-living crisis and weak overseas markets

Mercedes maker Daimler today said it would cut the hours of some 18,500 workers at its factories in Germany due to the current shortage of semiconductor chips.

The auto giant also said it would halt production at two plants for a temporary period of time.

A spokesperson for the Stuttgart-headquartered firm said that it was currently unable to predict what the impact of the shortage would be.

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

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

Workers at factories in Bremen and Rastatt will be effected by the production halt, which will initially last a week.

Daimler is the latest in a string of carmakers to announce production curbs due to the semiconductor dearth.

Due to surge of demand for the chips during lockdown, car firms are now unable to get hold of enough of them to build their vehicles at their usual rates.

On Friday it was reported that Nissan would put 800 staff at its factory in Sunderland on furlough due to the shortage.

Also last week US giant Ford said it would implement a number of temporary shutdowns across its American estates over the summer.

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