NEWS

A global chip shortage has led automakers to impose rolling shutdown policies in Mexico and other parts of North America, a move that has severely affected vehicle production in the region. "The shutdown was caused by a shortage of semiconductors, and yes, production has been reduced because of a shortage of chips," a spokesman for GM's Mexican unit said in response to a question about the drop in production.

In November, production at GM's Mexican unit fell 43.7% from a year earlier to 40,534 vehicles, according to INEGI. Nissan's Mexican unit said its production had also been hit by the chip shortage, with output falling 27.2% year-on-year to 41,525 vehicles in November.

Mexican auto parts industry group INA believes the global semiconductor shortage could be further complicated by the adoption of 5G technology in 2022. Alberto Bustamante, head of INA, said: "We estimate that the impact of the semiconductor shortage will continue until at least the first quarter of next year. Next year's chip supply will be combined with a very important issue, which is the process of moving from 4G to 5G networks." Bustamante expects the impact of the chip shortage to normalize starting in the second quarter of 2022.

Car production in Mexico fell 20 per cent last year to 3.04 million units, and the Mexican Automobile Industry Association (AMIA) predicts it could fall another 5 per cent in 2021. The head of the AMIA, Fausto Cuevas, predicted that car production in Mexico would return to pre-pandemic levels by the end of 2023 or 2024.

In the first 11 months of 2021, cumulative vehicle production in Mexico fell 0.68% year-on-year to 2,767,004 units; Cumulative vehicle exports rose 3.02% to 2,479,515 units over the same period.