Sees much higher 2022 revenues vs slightly higher before
Sees slightly higher 2022 earnings, vs flat before
Q2 adjusted EBIT 7.4 ahead of consensus

BERLIN, July 27 Reuters MercedesBenz is boosting its supply chain by dealing directly with chipmakers and forming contingency plans to cut gas usage by up to 50 in Germany, it said on Wednesday, raising its fullyear financial guidance after a strong second quarter.

The luxury automaker is also working with Asian battery suppliers to move more cell production to Europe, chief executive Ola Kaellenius said, adding partners would soon announce where they were increasing production capacity, in part to serve its demand.

MercedesBenz39;s Asian battery suppliers include China39;s CATL, as well as South Korea39;s SK Innovation, LG Chem and Farasis.

Chip supply constraints hampered production of electric and topend vehicles in the second quarter and will remain the main operational issue for the second half of the year, Kaellenius told analysts on a call, adding the company had struck several direct contracts with chipmakers.

On natural gas, the CEO said a mixture of efficiency measures, increased electricity consumption, adapting temperatures in production facilities and replacing gas with oil could lower gas use by up to 50 within the year, if necessary.

On electricity, we would need to discuss this with our electricity companies. The entire German industry would need to adapt, Kaellenius said, adding a 10 reduction in…