Covid and the subsequent bottleneck in the global supply chain has affected businesses across the world. Luxury car manufacturer Mercedes Benz has decided to prioritise production of models instead of its traditional method to get over the ongoing supply chain constraints. Martin Schwenk, managing director and CEO of Mercedes Benz India, while speaking to the media in Pune on Thursday, said this has led to increased waiting period for delivery, which is currently 1 month to 9 months, depending on the model.
Covid and the subsequent bottleneck in the global supply chain has affected businesses across the world. Freight charges have increased almost four times and there is a long wait for containers. Across the globe, businesses are struggling to get used to this supply chain constraints, which, analysts say, is expected to last for the next year or two.
Last year, Benz was one of the many automobile companies which had effected a price rise on its models. Schwenk said they have decided to prioritise production of models which have high demand. Raw materials, which earlier were shipped, are now being transported through air freight which has led the company to face inflation pressure. The German car manufacturer, he said, is looking at orders and trying to manufacture models which would have a shorter shelf life. Most of the demand, he said, comes from the top line models.
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
