Gothenburg, June 18 — In response to emerging supply chain challenges from China, Daimler Truck AG has increased its inventory of key raw materials, particularly semiconductors, to safeguard production continuity, CEO Karin RÃ¥dström said on Tuesday.
Speaking to reporters following a conference in Gothenburg, RÃ¥dström highlighted the strategic shift in the company’s supply chain approach, shaped by lessons learned during the COVID-19 pandemic. “The chip crisis taught us that just-in-time manufacturing is no longer viable under current global conditions,” she noted.
The German commercial vehicle manufacturer has since moved to maintain higher inventory levels, despite the increased capital expenditure this entails. “Given the current state of global affairs, this strategy is both prudent and necessary,” RÃ¥dström remarked.
Rare Earth Supply Risks
The automotive industry is now facing renewed anxiety over the supply of rare earth elements, which are essential in components ranging from electric motors to power window systems. China, which dominates the global rare earth market, introduced stricter export controls in April. Under the new regulations, exporters must secure updated licenses — a process that has reportedly slowed down the flow of materials.
These developments have heightened concerns across the industry about potential bottlenecks. “This is a major concern for our procurement teams,” RÃ¥dström said. “We’re monitoring the situation very closely.”
No Disruptions — Yet
Despite the tightening regulations, Daimler Truck has not yet experienced any production halts. “So far, we’re receiving the materials we need,” RÃ¥dström confirmed, though she emphasized the need for continued vigilance.
The company’s preemptive inventory strategy reflects a broader trend in the automotive sector, as manufacturers seek to bolster resilience amid geopolitical tensions, evolving trade regulations, and the increasing complexity of electrified vehicle components.
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