Mexico’s car production decreases by 26%

Mexico’s car production decreases by 26%

MEXICO – Auto production in Mexico fell by 25.9% during October, following a series of stoppages in some of the automotive plants due to the international shortage of semiconductors.

During said month, 257,813 light vehicles were assembled, while in the same month of last year, production reached 347,906 units, according to the Mexican Association of the Automotive Industry (AMIA).

Linked to the substantial decrease in car production, exports also showed a significant fall during this period; 224,535 units were shipped abroad in October, compared to 280,474 units last year. A contraction of 19.9%.

This situation reflects that these months have been even worse for the automotive and other manufacturing industries.

All automakers, with the exception of Ford Motor and Toyota, were impacted by these effects on global supply chains. In the case of Mexico, U.S. General Motors was the company that recorded the sharpest falls in both production and exports, with decreases of 68.6% and 55.2%, respectively.

Meanwhile, firms such as Audi, BMW Group, KIA, Mercedes Benz and Volkswagen recorded falls of between 30% and 40%, reflecting a similar impact on their respective production levels.

During October, and throughout 2021, most of the automakers announced shutdowns at their plants in Mexico due to shortages of materials. For their part, experts and international institutions have mentioned this crisis in supply chains as one of the risks to the global economy.

Source: El Economista