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The world’s largest truck manufacturer claims that the global chip scarcity is easing

According to the president of the company’s Mercedes lorry brand, Daimler truck holding is optimistic about getting through the lengthy chip scarcity that has plagued manufacturers around the world.

After months of manufacturing interruptions due to component shortages, the order backlog is keeping manufacturers active even as the global economy shows symptoms of faltering, according to Karin Radstrom, who also oversees the company’s European and South American operations.

She added that the world’s largest vehicle manufacturer has so far avoided disruption in China due to coronavirus lockdowns.

“It’s better than previous year,” Ms Radstrom said. “It’s not ideal, but it’s better than last year.” “I try not to get too excited too soon; we’re still keeping a tight eye on things.

“Manufacturers like as Daimler truck — which also owns the freightliner, western star, and fuso brands — and the volvo group had to cut output because enterprises all around the world couldn’t get enough of the high-tech components even as demand for transportation grew.

Ms Radstrom’s remarks echoed Mercedes-Benz production head Joerg Burzer’s appraisal earlier this week.

According to him, the chip scarcity was no longer causing major production halts.

As companies hurried to replenish dwindling supplies, a global shortage of truckers contributed to an increase in transportation prices.

While concerns about the global economy are growing, Ms Radstrom said there were no signs of a slowdown in lorry production, which is traditionally a sensitive sector to downturns.

Ms Radstrom stated, “There is still a very, very strong demand relative to supply.” “Despite the economic upheavals, we do not expect a drop in demand.” However, things can change very fast.”

Daimler Truck, which broke from Mercedes last year, is aiming to increase margins after years of struggling to match Volvo and Paccar’s returns while having unrivaled industrial scale.

Meanwhile, with the global crackdown on transportation pollution, electric vehicle specialists such as Tesla and Nikola are scheming inroads into the haulage business.

Daimler Truck’s zero-emissions strategy focuses on developing battery-powered commercial vehicles for short trips and hydrogen fuel-cell cars for longer routes.

Last year, the company began mass production of its electric car enactors in Germany.