Mexico’s once roaring auto sector falls on hard times

 Mexico’s once roaring auto sector falls on hard times

Once a magnet for billions of dollars in investments and rapid job creation, Mexican monthly auto production and sales are languishing at their lowest levels in a decade as the industry is pummelled by the pandemic and semiconductor chip shortages.

The chip problems felt around the world are hitting North America particularly hard, and Mexico is experiencing an outsized impact since it relies on autos for more than 3 per cent of its gross domestic product. Data published on Monday showed that auto production in Latin America’s second-largest economy in October was at its lowest for that month since 2011.

The auto supply chain issues could hit GDP by 1 per cent this year, according to a Bank of Mexico estimate from August, and the problems will probably last well into next year. The uncertainty ahead was compounded by changing US consumer tastes, the transition to electric vehicles and the Mexican government’s energy…

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