Auto output dives in Brazil, Mexico as chip shortages bite

MEXICO CITY/SAO PAULO, Oct 6 (Reuters) – Automotive manufacturing in Brazil and Mexico, Latin America’s two largest economies, plummeted in September, dragged down by an industry-wide semiconductor chip scarcity and railroad blockades in Mexico, knowledge confirmed on Wednesday.

Brazilian auto manufacturing was down 21.3% to 173,287 models in September from the identical month in 2020, when the {industry} was scrambling to renew manufacturing from a coronavirus-induced shutdown, Brazilian automakers affiliation Anfavea stated.

In Mexico, auto output plunged 33.30% from September 2020 to 208,092 automobiles, whereas auto exports fell by 24.18% to 195,294 models, knowledge from nationwide statistics company INEGI confirmed.

A semiconductor chip scarcity is inflicting main auto manufacturing cuts across the globe and auto {industry} officers have warned the issue is getting worse.

Compounding carmakers’ woes in Mexico have been 86 days of railroad blockades as of Oct. 5 within the western state of Michoacan, house to the important thing port of Lazaro Cardenas, based on evaluation by Grupo Financiero BASE.

Automakers in Brazil lowered projections for gross sales, output and exports this yr, blaming a scarcity of elements and a gradual financial restoration.

Anfavea, which represents world carmakers reminiscent of Common Motors , Volkswagen and Fiat in Brazil, now expects gross sales of recent cars in Brazil to both fall by 1% or rise by not more than 3% this yr. In July, the affiliation had forecast 13% gross sales progress from 2020.

Car gross sales in Brazil fell 10.2% in September from August to 155,075 models, based on Anfavea. Nonetheless, automotive output in Brazil did rise 5.6% in September from August.

Reporting by Alberto Alerigi Junior in Sao Paulo, Ricardo Figueroa in Santiago and Anthony Esposito in Mexico Metropolis; Modifying by Andrew Heavens and Chris Reese

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