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Auto Production Plummets At Manufacturers, NYC Sabotages Shipping, Fires Workers, Break Supply Chain
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Mexican automotive production plunged to the lowest levels annually since 2014 as ongoing semiconductor shortages put the brakes on the industry.
National statistics agency (INEGI) data shows auto production in December slumped 16.51% to 212,272 vehicles from a year earlier, while exports dropped by 17.31% to 227,465.
Volkswagen Group's Audi was the worst-hit automaker which saw a staggering 74% drop in production. General Motors Co. and Daimler AG's Mercedes Benz both saw output halved.
An unrelenting global semiconductor shortage continues to terrorize automakers in Mexico and all over North America, forcing many to implement rolling shutdowns, curtailing production.
Detroit-based General Motors Co's spokesperson said last month, "the stoppages are due to the shortage of semiconductors, and yes, production decreased due to the shortage."
delivery times for chips jumped in December, signaling the semiconductor shortage is worsening.
"We have seen a spike in the number of labor going out into quar****ne," Port Authority Director Sam Ruda said. The average wait time for a container ship is about 4.75 days in the final week of 2021, compared with an average of 1.6 days for the entire year.
Running at full capacity since the chaos began in early 2020, the port handled 27% more cargo in November 2021 than it did in November 2019. So any disruption to labor has made it susceptible to a backlog.
"We've essentially had five years of cargo growth in the space of 18, 20 months or so," he said.
Ruda said the number of vessels sitting off port was approximately 12 to 13 to start the new year and down to 9 this past Wednesday. By Friday, ships at anchor increased to 11.
"On an order of magnitude, it does seem quite small, but it does have our attention," he said.
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