• ITVI.USA
    15,496.720
    85.590
    0.6%
  • OTLT.USA
    2.743
    0.003
    0.1%
  • OTRI.USA
    21.110
    0.000
    0%
  • OTVI.USA
    15,466.390
    90.520
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
  • ITVI.USA
    15,496.720
    85.590
    0.6%
  • OTLT.USA
    2.743
    0.003
    0.1%
  • OTRI.USA
    21.110
    0.000
    0%
  • OTVI.USA
    15,466.390
    90.520
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • WAIT.USA
    125.000
    -1.000
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NewsSupply ChainsTrucking

Chip shortage forces automakers to adjust Mexico plants

General Motors is cutting vehicle production until mid-March

The U.S.-Mexico automotive production industry has been affected by a global semiconductor supply chain disruption that has slowed assembly lines around the world. 

General Motors and Volkswagen recently announced they were extending shutdowns or adjusting production schedules at plants in Mexico due to semiconductor chip shortages. 

Volkswagen de México said Thursday it will adjust its production schedule at its plant in Puebla, Mexico, for the Jetta model until March 5 due to lack of components.

“The production volume of this model will recover in subsequent weeks. The personnel in this production segment who have vacations available will take them,” Volkswagen said in a statement.

In January, Audi, Volkswagen’s luxury brand vehicle line, announced it would reduce production at its Puebla plant for its Q5 model to one shift due to the lack of semiconductor chips.

General Motors is extending temporary shutdowns at three assembly plants, including one in San Luis Potosí, Mexico, until mid-March.

“Semiconductor supply remains an issue that is facing the entire industry,” GM said in a statement on Tuesday. “GM’s plan is to leverage every available semiconductor to build and ship our most popular and in-demand products, including full-size trucks and SUVs and Corvettes for our customers.”

GM’s San Luis Potosí assembly plant builds the Equinox, Chevrolet Trax crossover and the GMC Terrain SUV. 

Semiconductors are used to make auto parts such as radios, speedometers, reverse cameras, proximity sensors, tire sensors, passenger detectors for seat belt alarms and more. 

The cause of the current shortage is due to a mixture of factors such as slowdowns in chip production caused by the COVID-19 pandemic and spikes in demand for consumer electronic products like laptops due to changes in lifestyle caused by the pandemic.

Another factor causing the chip shortage was a fire in October at a major chip plant in Japan owned by Asahi Kasei Corp. 

Volkswagen and GM are not alone. Ford Motor Co., Fiat Chrysler, Honda and Renault are other automakers that have announced changes to production schedules at factories in the U.S. and overseas because of the chip shortage.

Click for more FreightWaves articles by Noi Mahoney.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers Mexico cross-border trucking, logistics and trade for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1999. Mahoney has more than 20 years experience as journalist, working for newspapers in Florida, Maryland and Texas. Contact nmahoney@freightwaves.com

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