Semiconductor Shortages Affect More OEMs in Mexico

Vehicle production and exports in Mexico have fallen to levels not seen since 2016 and 2017, according to Fausto Cuevas, Director General of AMIA, due to the semiconductor shortage. Cuevas explained that while the decrease in supply had not been previously felt, it is now affecting local manufacturing, according to La Jornada. Oscar Albín, Executive President of INA, said that different manufacturing plants in North America are closing due to the shortage.

GM, for example, announced production adjustments at three plants in North America, including one in San Luis Potosi were operations will pause until mid-March at least, reported MBN. Volkswagen announced it will also adjust its production program until Mar. 5 for the Jetta, the third most-produced vehicle in Mexico during 2020, reported Milenio. “To make a car, you need around 5,000 parts. If a manufacturer lacks a single component, it has to stop production,” said Renato Mendoza Villaseñor, President of Queretaro’s Automotive Cluster, according to El Economista.

Kia Motors México, however, claims it has not been affected by the shortage as it has enough chips to supply its facility in Nuevo Leon, reports El Economista. Horacio Chávez, CEO of Kia Motors Mexico, explained that the company faces no shortage troubles thanks to proper planning alongside its Korean suppliers. “Luckily, right now we have suffered no impact. We hope that we can keep it this way but we have to remain patient and keep constant communication in case we see an impact,” he assured El Economista. Chávez also highlighted that the company plans to increase its participation in the Mexican market to 9 percent, after reaching 8.3 percent this January. During 2021, the company will focus on consistency to avoid being affected by the shortage, added Chávez.