The global shortfall of semiconductor chips will endure through this year and into 2023, according to the CEO of premium German carmaker Mercedes-Benz.

“The semiconductor situation is very present and will be a challenge for the industry throughout this year and into next year,”CEO Ola Kaellenius said at the Reuters Automotive Europe conference in Munich.

Despite market turbulence, he stated that the automaker still has a large order backlog.

“We have not seen any signs yet that demand is going south,” Kaellenius said.

He stated that as the auto industry shifts to electric cars (EVs), Mercedes-Benz would take a “more active role” throughout its supply chain, all the way to the mines where raw materials are mined.

“We don’t stop at battery cell factories… we have to go through the whole value chain here because there so much is in motion,” Kaellenius said.

He said that transitioning the carmaker’s engine facilities to just producing entirely electric vehicles would take a decade, but he was certain it could be done in a timely manner.

(Adapted from FinancialExpress.com)