The German giant said Friday (April 23) that the global computer chip shortage could continue to hit sales.

Earlier this week the firm cut working hours for up to 18,500 employees, and said it would temporarily halt output at two plants.

It follows other big automakers including Volkswagen and Ford in cutting output.

Now Daimler says it has "limited visibility" on the future supply of chips, though it assumes things will get better in the second half of the year.

The troubles come as new-generation cars grow ever more dependent on technology.

Mercedes last week unveiled its EQS electric sedan - seen as a strong rival to vehicles from U.S. pioneer Tesla.

For all the chip worries though, the company still expects 2021 to be a big improvement on last year.

It's now predicting a profit margin of up to 12%, instead of a maximum 10% in earlier forecasts.

Daimler shares edged higher in early trade Friday, beating a negative start to the day for the wider market.