Mexico auto output dives in February amid bad weather, chip shortages

By:  Reuters
01:09 03/05/2021

MEXICO CITY (Reuters) - Mexican automotive production and exports tumbled in February, data from the national statistics agency (INEGI) showed on Friday, hit by temporary closures of factories due to bad weather and a global semiconductor chip shortage.

Auto output plunged 28.85% from February 2020 to 238,868 units, the figures showed, while auto exports declined 21.80% from the same month a year earlier to 213,987 units.

The cold snap that last month overwhelmed Texas' power grid and disrupted natural gas supplies to Mexico also led to closures of some Mexican auto factories as northern regions of the country suffered power outages.

Plants in Mexico, as well as other parts of North America, in February announced production cuts amid difficulties obtaining semiconductor chips.

The shortage stems from a confluence of factors as auto manufacturers, which shut plants for two months during the COVID-19 pandemic last year, compete against the sprawling consumer electronics industry for chip supplies.

(Writing by Drazen Jorgic; Editing by Toby Chopra and Dan Grebler)

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