Daimler warns more workers could see hours cut amid chip shortage

German carmaker Daimler on Friday said it could send even more employees back into short-time work due to persisting delivery bottlenecks of important electric parts.

Short-time work is part of a government scheme to subsidize wages of employees when economically stricken companies cut their hours, in order to avoid layoffs.

In the next few weeks, there could be production stops and short-time work “here and there” due to the chip crisis, financial chief Harald Wilhelm told journalists, without giving details on which plants would be affected and for how long.

This depended on which chip parts would be available at which location, he said. “This is tactical work week after week and definitely not in our interest to exploit this in any way,” said Wilhelm.

The chip shortages could affect the production of different models, including the S class, Wilhelm said.

Daimler had already announced that 1,000 employees would be sent into short-time work at each of its factories in Rastatt and Bremen until the end of next week.

Other car manufacturers have also been forced to interrupt their production due to global issues with the supply of the integrated semiconductor circuits, or chips.

Audi on Friday announced it would limit production at its plant in Neckarsulm during the coming week, sending the concerned workers into short-time work.

“As the situation continues to be serious, there can be squeezes anytime,” said Dieter Braun, head of supply chains at the Volkswagen subsidiary.

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