Daimler sees chip shortage dragging on into 2022 – Reuters

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Daimler sees chip shortage dragging on into 2022 – Reuters

Daimler cut production due to chip shortageCompany sees less severe chip shortage in 2022German firm sees healthy S-class sedan ordersLONDON, July 21 (Reuters) - A global shortage of semiconductor chips will dent car sales in the second half of 2021 and will extend into 2022, Daimler AG (DAIGn.DE) said on Wednesday, but the maker of Mercedes-Benz vehicles left unchanged its profit margin outlook for this year.Along with other carmakers, Daimler cut back production this year because of a chip shortage during the coronavirus pandemic, prompting the German company to focus on higher-margin models.Chief Financial Officer Harald Wilhelm told investors that although the chip shortage would last into 2022, it would be less severe than this year.The premium carmaker, which also faces the challenge of high prices for steel, copper and aluminium in the second half of 2021, said its visibility into how chip supply would develop was currently low."Improving supply visibility is a top priority for us," Chief Executive Ola Källenius told a conference call with analysts and investors, although he said the chip shortage "is a fixable problem."The shortage comes as demand for cars has spiked during the global economy's recovery from the coronavirus crisis, driving up prices of