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MEXICO CITY/SAO PAULO — 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 items 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 mentioned.
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In Mexico, auto output plunged 33.30% from September 2020 to 208,092 autos, whereas auto exports fell by 24.18% to 195,294 items, knowledge from nationwide statistics company INEGI confirmed.
“All of that is because of the scarcity of semiconductors, which at this level is affecting all ranges of manufacturing for all contributors within the home market,” mentioned the top of the Mexican Automotive Trade Affiliation (AMIA), Fausto Cuevas.
A semiconductor chip scarcity is inflicting main auto manufacturing cuts across the globe and auto {industry} officers have warned the issue is getting worse.
Within the newest fallout from the chip shortfall, Japanese automaker Nissan informed Reuters it plans to hold out momentary stoppages at two Mexican vegetation for a number of days in October attributable to changes wanted to handle the state of affairs.
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AMIA’s Cuevas forecast Mexican automotive exports would decline between 3.8% and 4.2% this yr from 2020 and projected manufacturing to fall by between 4.7% and 5%, saying Mexico’s auto {industry} would solely return to pre-pandemic ranges in 2024.
A senior govt at Mexico’s Car Distributors Affiliation (AMDA) mentioned analysts had been forecasting that offer and demand for semiconductor chips could be in stability across the second quarter of 2022.
Compounding carmakers’ woes in Mexico have been 86 days of railroad blockades as of Oct. 5 within the western state of Michoacan, dwelling 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 components and a gradual financial restoration.
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Anfavea, which represents international carmakers comparable to Common Motors, Volkswagen and Fiat in Brazil, now expects gross sales of latest vehicles 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.
Automobile gross sales in Brazil fell 10.2% in September from August to 155,075 items, based on Anfavea. Nonetheless, automotive output in Brazil did rise 5.6% in September from August. (Reporting by Alberto Alerigi Junior in Sao Paulo, Sharay Angulo and Anthony Esposito in Mexico Metropolis, and Ricardo Figueroa in Santiago; Enhancing by Andrew Heavens, Chris Reese and Hugh Lawson)
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