Carmakers Daimler and BMW plan to limit the volume of premium models they ship even once the industry-wide chip shortage eases, in a bid to lock in the hefty price increases they have achieved during the pandemic.
A chronic shortage of semiconductors, which cars rely on for everything from electronic windows to driver assistance systems, has hobbled the supply of vehicles just as consumer demand rebounds from repeated lockdowns.
Although the luxury German carmakers were already shifting away from a volume-based approach before Covid-19, customers’ willingness to pay higher prices during the pandemic has emboldened them to go further.
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