Slow Start for Auto Sector; Chip Shortage Continues

This week's top stories feature the sector’s performance in January, which presented a year-on-year 15 percent decrease in production. Semiconductor and chip shortages still affect automakers’ production operations in Mexico and around the world.

The Jalisco Automotive Cluster is part of our featured interviews this week. Do not miss the cluster’s insight on how Mexico's tech hub is preparing for automotive trends. In the international arena, Volkswagen partners with Microsoft for the development of autonomous vehicle systems, while Daimler Trucks seeks to have a zero-emission commercial vehicle line by 2027.

Buckle your seatbelt, this is the Week in Automotive!

Slow Start for Mexico’s Automotive Industry

In January 2021, the automotive sector produced 15 percent fewer vehicles year-on-year, according to data from INEGI, for a total of 278,711. The fall in production was caused by a global shortage of semiconductors, which are necessary for the assembly of vehicles’ computers.

Semiconductor Shortages Generate Uncertainty

Waiting times for semiconductor supply have increased from between 12 and 16 weeks to more than 26 weeks. GM has announced that starting on Feb. 8, it would temporarily stop production at three plants in North America: Ontario, Kansas, and San Luis Potosi.

Featured Interviews

Jalisco Making the Best of Tech and Automotive. Carmen Hernández, Director General of Jalisco Automotive Cluster, details key areas companies in the state are focusing on, including the development of EV suppliers.

Do not miss JONES Plastics, a US plastic injection supplier aiming to diversify its portfolio in Mexico.

When addressing concerns in vehicle or auto part production, data-driven decisions are essential. Do not miss our interview with Gilberto Saucedo, CEO of the Institute of Strategic Technologies for Business Intelligence (ITEIN).

Production of Volkswagen Taos Begins in Puebla

After a successful first batch for the domestic market, Volkswagen starts production of the new Taos model for foreign markets.

Volkswagen Group Teams Up With Microsoft

Volkswagen Group further strengthens its capabilities in the development of automated driving (AD) solutions. The group’s software company, Car.Software Organization, will collaborate with Microsoft to build a cloud-based Automated Driving Platform (ADP) on Microsoft Azure to leverage its computing and data capabilities to deliver automated driving experiences even faster at a global scale.

Daimler Trucks Ready for Zero-Emission Commercial Vehicles

Last week, Daimler AG announced the spinoff of its truck divisions. Martin Daum, virtual leader of the new company, told Reuters zero-emission commercial vehicles could be ready by 2027.