Daimler Powers Through Chip Crunch, 2021 Targets on Track

Daimler AG's corporate headquarters reflected in a window in Stuttgart, Germany on Sept. 30, 2021. Marijan Murat/dpa via AP

LONDON—Daimler AG reported a higher quarterly profit on Friday despite a 30 percent drop in Mercedes-Benz unit sales due to a global semiconductor chip shortage, as it focused on more profitable luxury cars and cut costs, and said it should meet its 2021 profit targets.

The German premium carmaker said it expects chip supplies to improve in the fourth quarter. It said the shortage should continue in 2022 but should improve compared to 2021.