Arrow-right Camera
The Spokesman-Review Newspaper

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Clear Day 85° Clear
News >  Business

Mercedes sales decline 16% as supply-chain woes continue

July 11, 2022 Updated Mon., July 11, 2022 at 2:22 p.m.

Mercedes-Benz electric vehicles are shown inside a Mercedes-Benz showroom in Berlin on Feb. 24, 2022.  (Bloomberg )
Mercedes-Benz electric vehicles are shown inside a Mercedes-Benz showroom in Berlin on Feb. 24, 2022. (Bloomberg )
By Monica Raymunt Bloomberg

Mercedes-Benz sold 16% fewer cars during the second quarter as covid-related lockdowns and a prolonged shortage of semiconductors continued to weigh on production.

Deliveries in China, the world’s largest car market, declined 25%, while sales in Europe fell 10%, the Stuttgart-based automaker said in a statement Monday.

“We are making every effort to fulfill customer expectations, despite the current supply restrictions,” said Britta Seeger, the management board member responsible for marketing and sales.

The auto industry is still feeling the pain of supply-chain disruptions and shortages of components such as semiconductors, particularly amid a broad transition to electric vehicles that are dependent on increasingly sophisticated software.

BMW said last week that its sales declined almost 20% in the second quarter.

Ongoing supply-chain problems could jeopardize Mercedes’s plan to cut back on entry-level vehicles in order to focus on higher-end cars that deliver bigger profits.

Mercedes said a dearth of chips contributed to a 16% decline in sales for the top-end luxury category.

EV sales were a bright spot in Mercedes’s report, with its EQ sales nearly doubling to 23,500 units compared to the same period last year.

The first half of the year saw the brand’s EV sales rising to 45,400 units – an increase of 134%.

“The electric ramp up is gaining traction,” Seeger said. “It shows that we offer compelling electric vehicles our customers desire.”

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Active Person

Subscribe now to get breaking news alerts in your email inbox

Get breaking news delivered to your inbox as it happens.