Chip shortage forces Mercedes-Benz to offer cars with less equipment

By dpa | 7 October 2021


STUTTGART: The worldwide shortage of electronic chips is making its mark on the car industry, and sales figures have been plummeting in countries around the world as output stalls.

In an effort to limit the dip in sales figures, Mercedes-Benz is now offering customers the choice of buying cars at a reduced price - if they are willing to do without some technical features.

A sales spokesman for the German luxury car manufacturer has confirmed that not all vehicles can be delivered with the complete technical equipment due to the chip crisis. If a customer does not agree, they can still withdraw from the purchase, Mercedes-Benz said.

Erste Elektro-Limousine aus Mercedes-Benz Hightech-Produktion: Anlauf des EQS in der Factory 56 First electric saloon from Mercedes-Benz high-tech production facility: Start of production of the EQS at Factory 56


Car now, high-tech features later? Unfortunately that's not the current option, and the company says whoever takes delivery of a car with the reduced equipment cannot expect a later upgrade.

This is not always possible for technical reasons, according to the Mercedes-Benz sales department. How many cars have been ordered and which models will now come off the production line with the reduced equipment due to the chip crisis remains unclear.

The spokesman said that customers could wait for their cars until the desired equipment was available. Mercedes-Benz cars are known for their luxury tech features, notably the MBUX system that adds smart features and voice control.

Erste Elektro-Limousine aus Mercedes-Benz Hightech-Produktion: Anlauf des EQS in der Factory 56 First electric saloon from Mercedes-Benz high-tech production facility: Start of production of the EQS at Factory 56


The chip slump has been weighing on the car industry for months, and it is unclear how long shortages will persist. Analysts say as many as 10 million to 11 million vehicles may not be fully built this year.

Since modern cars contain a lot of electronics, the worldwide problems with the supply of electronic chips is forcing car manufacturers to stockpile in production - unfinished vehicles are parked and then retrofitted when the parts are available.

Another spokesman for Mercedes-Benz recently confirmed that vehicles are also being temporarily stored because of the shortage of some semiconductor components.

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