Daimler to face supply-chain risk from switch to electric cars

German automaker Daimler A.G. said that that a fall in demand for diesel cars and a switch to electric vehicles could force it to prop up its supplier base, Reuters reported. The automaker said that its Mercedes-Benz cars segment could require changed volumes of components from suppliers due to the planned electrification of new model series. "If suppliers cannot cover their fixed costs, there is the risk that suppliers could demand compensation payments," Daimler said. Political crises and uncertainties could also lead to supply bottlenecks for specific raw materials, the automaker added.

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