India markets close in 6 hours 12 minutes
  • BSE SENSEX

    48,771.22
    +93.67 (+0.19%)
     
  • Nifty 50

    14,658.60
    +40.75 (+0.28%)
     
  • USD/INR

    73.8350
    +0.0250 (+0.03%)
     
  • Dow

    34,230.34
    +97.34 (+0.29%)
     
  • Nasdaq

    13,582.42
    -51.08 (-0.37%)
     
  • BTC-INR

    4,196,801.00
    +143,116.50 (+3.53%)
     
  • CMC Crypto 200

    1,462.67
    +57.36 (+4.08%)
     
  • Hang Seng

    28,420.87
    +2.87 (+0.01%)
     
  • Nikkei

    29,391.19
    +578.59 (+2.01%)
     
  • EUR/INR

    88.6570
    +0.0267 (+0.03%)
     
  • GBP/INR

    102.6177
    -0.0223 (-0.02%)
     
  • AED/INR

    20.0460
    -0.0050 (-0.02%)
     
  • INR/JPY

    1.4777
    +0.0013 (+0.09%)
     
  • SGD/INR

    55.2560
    -0.0160 (-0.03%)
     

Daimler cuts hours for up to 18,500 workers over chip shortage

  • Oops!
    Something went wrong.
    Please try again later.
Ilona Wissenbach and Nick Carey
·1-min read
  • Oops!
    Something went wrong.
    Please try again later.

By Ilona Wissenbach and Nick Carey 

  BERLIN (Reuters) - Daimler will cut working hours for up to 18,500 employees and temporarily halt production at two plants in Germany due to a shortage of semiconductor chips that has hit global car production, it said on Wednesday. 

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

  "The situation is volatile, so it is not possible to make a forecast about the impact," she added. 

  Daimler, which makes Mercedes-Benz cars, said workers at its plants in Bremen and Rastatt would have their hours shortened. 

  The move will halt production at the factories but allow staff to continue working on special projects. The production halt will take effect from April 23 for one week, initially. 

WATCH: Daimler takes fight to Tesla with Mercedes EQS

  The move was earlier reported by Focus Online, citing dpa news agency. 

  The global shortage stems from a confluence of factors as carmakers, which shut plants during the COVID-19 pandemic last year, compete with the sprawling consumer electronics industry for chip supplies. 

  Cars have become increasingly dependent on chips - for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking. 

  The shortage of chips has hurt vehicle production at carmakers including General Motors Co, Volkswagen AG and Ford Motor Co. 

  Earlier on Wednesday, automaker Stellantis said it would replace digital speedometers with more old-fashioned analogue ones in one of its Peugeot models, in a fallout from the shortage of semiconductor chips. 

WATCH: How to save money on a low income

  (Reporting by Ilona Wissenbach; Writing by Madeline Chambers; Editing by Kirsti Knolle and Mark Potter)