Mexico stops assembling 581,513 cars due to a lack of electronic components

(Photo: inautonews.com)

MEXICO, (December 28, 2021).- One month after the end of the year, a shortage from semiconductors closed the assembly lines in different parts of the world, and in Mexico, 581,513 automobiles have not been assembled in Mexico due to this situation. 

Cumulatively from January to November this year, the country became the second most affected country in the T-MEC partner bloc after the United States, which stopped manufacturing one million 476,524 units, so much so that the implications were for Canada. 379 thousand 238 cars, as per data provided by the National Autoparts Industry (INA).

Thus, the United States of America, Mexico, and Canada contributed 2 million 437 thousand 275 stopped gathering together vehicles for lack of semiconductors, of which 60 percent correspond to the American federation, 24 percent to the ‘Azteca’ nation, and 16 percent to the maple leaf country.

Nissan recently said it would lay off 866 employees at its Morelos plant as it would stop the production of models like the Versa.

Fight for chips among various industries, it began with the pandemic, when the priority was to meet the demand for semiconductors for computers, although this has already stagnated, now that the demand for cell phones has shifted to 5G networks.

Experts predict that this will happen in mid-2022 when the industry motor vehicle Start regularizing receipt of chips for assemblers of vehicles,

Data from Mexican Industry Association motor vehicle (AMIA), the industry worked at 63 percent installed capacity in November this year, this is due to a shortage of chips, which has led to a technical halt at the plants which have affected their production.

Mexico has delivered 2,769,495 cars from January to November, the figure is still down 23 percent from the same period in 2019.

Moreover, from January to November this year, the export of units from Mexico abroad reached 2,279,505 units, which is a contraction of 21 percent compared to the exports in 2019.

The United States has been the main recipient with 1.9 million automobiles, followed by Canada with 166 thousand, Germany 134.7 thousand, Colombia 37.3 thousand, and Brazil 29.1, to mention the main destinations.

Thus, North America participates with 82.7 percent of exports, followed by Europe with 7.6 percent, Latin America with 6.3 percent, Asia with 2.7 percent, Oceania with 0.4 percent, and Africa with 0.1 percent.

The period of which automobile The wait to receive their chip orders has increased in recent months, indicating that semiconductor shortages will continue to hinder the global economic recovery brought on by the COVID-19 pandemic.

The gap between placing an order and receiving a shipment, known in the industry as lead time, added another five days to an average of 22.3 weeks in September, according to research by Susquehanna Financial Group.

Susquehanna analyst Chris Rowland wrote that microcontroller lead times have risen sharply again, an alarming sign for automakers that have been hit hard by the crisis. Vendors such as NXP Semiconductors NV, Texas Instruments, Infineon Technologies AG, ON Semiconductor, and Microchip Technology reported the longest lead times.

Figures are only 4% below pre-pandemic levels

in spite of the shortage of semiconductors, the National Auto Parts Industry (INA) plans to close this year with sales of $93.5 billion USD, which means just 4.4 percent down from pre-pandemic levels, when in 2019 they hit $97,834 million US dollar figures, in addition to registering a 19.3 percent annual increase.

For most of this year, auto parts production in Mexico has maintained its level and is expected to close with a total of $93.5 billion USD, a 19 percent increase from last year’s $78.4 billion.

By unit, Coahuila is the largest producer of auto parts with a share of 16.9 percent in the January to September period, followed by Chihuahua with 12.3 percent and Nuevo León third with 11.2 percent.



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