Chip Shortage Seen Limiting Mexico Auto Output to 2020 Levels

(Bloomberg) — Supply Lines is a daily newsletter that tracks trade and supply chains disrupted by the pandemic. Sign up here.

Mexico’s auto output this year is now expected to be similar to last year’s level amid a worldwide chip shortage that had production plants running at just over 50% capacity in August. 

The nation produced 21% fewer vehicles last month than a year earlier, when production was already lower than usual due to the pandemic. The month’s output was 6.5% lower than the average for the same month over the past 10 years, said Fausto Cuevas, head of Mexico’s auto chamber, in a press conference Monday.

“The chip shortage has become a problem for companies to maintain production levels,” Cuevas said. “We now estimate the total volume this year to be close to 3 million vehicles, close to what we had last year.” Mexico produced 3.75 million cars in 2019 and just over 3 million in 2020. The industry expects shortages to last until the second half of 2022, he said. 

The worst-hit automaker was Daimler AG’s Mercedes Benz, which saw a 63% drop in production. General Motors Co. posted a 59% drop and Mazda Motor Corp. output fell 47%, according to Inegi, Mexico’s statistics agency.



More stories like this are available on

©2021 Bloomberg L.P.

Close Bitnami banner