Truckmaker Navistar Says Omicron Variant Likely to Slow Supply Chain Recovery, Auto News, ET Auto

Volkswagen-backed US truck maker Navistar International Corp said on Wednesday that the Omicron variant of the coronavirus would likely slow the recovery of the global supply chain.

A shortage of semiconductor chips, used to power everything from driver aids to infotainment systems, has forced major automakers to cut back on production and, in some cases, build vehicles without certain features.

Navistar has adjusted its production schedule for next year to align with suppliers’ expected delivery capacities, it told Reuters in an emailed statement.

“We remain flexible and have the potential to increase production rates if the supply base can exceed current expectations,” said Paul Martin, vice president of finance and revenue at Navistar.

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DB Schenker will use prototype electric trucks in the spring and summer of 2022 in distribution operations, the results of which will be used in the production of 1,470 electric trucks.

The world’s largest utility vehicle maker, which will be separated from Daimler on December 10, has introduced a cost-cutting measure aimed at boosting profit margins as it grapples with chip shortages that hurt the overall of the sector. Daum said there would be a big financial impact.