Mercedes is wary of headwinds regarding chips

Mercedes-Benz AG has issued a cautious forecast for 2022, citing supply chain concerns and rising raw material prices as further obstacles.

To help offset increased expenses, the business said it plans to sell somewhat more vehicles than last year by expanding shipments of higher-margin models.

The company plans to sell electric vehicles by 2030

While the overall picture of semiconductors is improving, Mercedes warns that some components are still unstable and have selective constraints.

“Further improvement in net pricing is predicted,” the business stated in a statement, “but this does not entirely balance the headwind linked to raw materials, which is forecast to grow in 2022 compared to last year.”

Ola Kallenius, the company’s CEO, is speeding up efforts to transform the company into an electric car manufacturer capable of competing with Tesla Inc. and selling electric automobiles by 2030.

Mercedes paid a dividend of 5 euros per share ($5.62), more than three times the 1.35 euros per share paid the previous year.