Auto production plunges in Brazil, Mexico as chip shortages hit
MEXICO CITY / SAO PAULO, Oct.6 (Reuters) – Auto production in Brazil and Mexico, Latin America’s two largest economies, fell in September, driven by a shortage of semiconductor chips across the country. industry and rail blockades in Mexico, according to data released Wednesday.
Brazilian auto production fell 21.3% to 173,287 units in September from the same month in 2020, when the industry rushed to resume production after a coronavirus-induced shutdown, the manufacturers association said. Brazilian automobiles Anfavea.
In Mexico, auto production plunged 33.30% between September 2020 and 208,092 vehicles, while auto exports fell 24.18% to 195,294 units, according to data from the national statistics agency INEGI.
“All this is due to the shortage of semiconductors, which at this stage affects all levels of production for all players in the domestic market,” said the head of the Mexican Association of the Automobile Industry (AMIA), Fausto Cuevas.
A shortage of semiconductor chips is causing major cuts in automotive production around the world, and auto industry officials have warned the problem is worsening. Read more
In the latest fallout from the chip shortage, Japanese automaker Nissan (7201.T) told Reuters it plans to make temporary shutdowns at two Mexican factories for several days in October due to adjustments needed to handle the situation. Read more
A senior executive with the Association of Automobile Distributors of Mexico (AMDA) said analysts predict that supply and demand for semiconductor chips will balance out around the second quarter of 2022.
According to an analysis by Grupo Financiero BASE, 86 days of rail blockades have compounded the woes of auto manufacturers in Mexico in the western state of Michoacan, home to the key port of Lazaro Cardenas.
Brazilian automakers have lowered their projections for sales, production and exports this year, blaming a shortage of parts and a slow economic recovery.
Anfavea, which represents global automakers such as General Motors (GM.N), Volkswagen and Fiat (STLA.MI) in Brazil, now expects new car sales in Brazil to decline by 1% or no not increase by more than 3% this year. In July, the association expected sales growth of 13% from 2020.
Vehicle sales in Brazil fell 10.2% in September from August to 155,075 units, according to Anfavea. Yet auto production in Brazil rose 5.6% in September compared to August.
Reporting by Alberto Alerigi Junior in Sao Paulo, Ricardo Figueroa in Santiago and Sharay Angulo and Anthony Esposito in Mexico; Editing by Andrew Heavens and Chris Reese
Our Standards: Thomson Reuters Trust Principles.