Daimler Truck CEO says production could have been higher by a “five-digit number” without supply chain issues

Daimler Truck CEO says production could have been higher by a “five-digit number” without supply chain issues

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HANNOVER, Germany (Reuters) – Daimler CEO Martin Daum told Reuters that Daimler truck shipments could have been higher by a “five-digit number” in 2021 and 2022 if it had not encountered supply chain issues.

Dom said in an interview on the sidelines of the IAA Transportation Conference (NYSE:) in Hanover on Monday that he saw no signs of declining demand in the truck market and that order books were filling up the moment they opened.

This demand meant that the truck and bus manufacturer was still able to afford its higher costs, enabling margins to recover from injury during the pandemic to the 7-9% target range.

The company sold 120,961 units in the second quarter of 2022, an increase of 4% over the same period last year.

Daimler Truck aims to make up to 60% of its sales electric or hydrogen-fueled vehicles by 2030, Daum said after the company introduced its first electric heavy-duty truck, fueled by LFP batteries for a range of up to 500 km.

Dom said Europe, and Germany in particular, has been lagging behind in building battery production, with most of it still coming from Asia.

“Germany has a clear competitive disadvantage when it comes to energy prices,” Dohm said, referring to record high energy prices in the German market, which were partly caused by a standoff over gas shipments between Germany and Russia.

Dom said this could hamper the country’s ambitions to build batteries, an energy-intensive process.

(Corrects this story to say the output could have been higher with a five digit number, the title and paragraph 1)

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