Mexican auto workers suffer from chip shortages with layoffs and pay cuts, according to Reuters

After cuts and stoppages in production due to the global shortage of semiconductors, Mexican workers in auto plants are affected as your work is reduced taking turns at the same time as jobs are eliminated, according to a series of interviews he conducted Reuters.

In Aguascalientes, one of the main automotive centers in the country, the crisis hit hard and auto companies, which have plants there, were forced to continual closures, which resulted in lost wages for tens of thousands of workers.

Reuters interviewed Cuitlahuac Pérez, general director of the auto parts firm Maindsteel, based in Aguascalientes, and director of one of the state’s automotive clusters, who commented that his company and other suppliers there suspend their operations an average of seven to eight days per month due to stoppages of activities of the automotive companies.

In fact, Pérez estimates that around one in five local auto workers He lost his jobWhile the rest have seen major cuts in their pay since the chip crisis began.

One of the main carmakers affected in Mexico is Nissan, the second largest vehicle producer in the country and which operates a propulsion facility and an assembly plant in Aguascalientes, where the March, Versa, Kicks and Sentra.

So far, the automaker has closed its Mexican facilities in five times this year due to a shortage of semiconductors, Reuters reported. The last one was at the beginning of this month and the strikes are five to seven days at its Aguascalientes plants.

Nissan Aguascalientes

Nissan Plant 2 in Aguascalientes

A Nissan employee, who preferred not to give her name, told Reuters that she and her husband work in the industry, but that the few hours of work came to affect your monthly incomebecause they have fallen behind on their mortgage payments and other debts.

“Financially you feel like you’re getting out of this and then they send me home again, or they send him home. The weekend comes and we don’t even have two pesos.”

We contacted Nissan Mexico to find out their position on the matter:

At Nissan Mexicana, we continue to adjust our production schedules within our North American manufacturing operations due to the supply of semiconductor-related parts. At Nissan Mexicana, our Aguascalientes Plant 2 will temporarily stop operations for seven days in November. For its part, the Aguascalientes Plant 1 will stop operations for five days in November, and the CIVAC Plant will temporarily stop operations for eight days in November. We continue to make adjustments to our production process to minimize the impact this has had on the automotive industry locally and globally. We will continue working to recover production and finalize the delivery of vehicles to our distributors and customers.

Other companies that have been affected are Daimler and Renault, who jointly operate an assembly plant in Aguascalientes where the Mercedes-Benz GLB is produced. That factory has experienced “shift reductions or production interruptions”said a Mercedes-Benz spokesman in comments emailed to Reuters.

It also affects the economy of Mexico

But the situation is already weighing on the country’s economy, as car production fell a twenty% to 3.04 million vehicles last year, and is forecast to drop to another 5% by 2021, according to data from the Mexican Association of the Automotive Industry (AMIA).

In total, the automotive industry in Mexico employs 946,000 workers currently, but they have been lost 16,000 jobs since late 2019, according to AMIA figures.

Automotive Workers of Mexico

Meanwhile, in August, Banco de México projected that auto work stoppages as a result of chip shortages could cost Mexico up to 1 percentage point of GDP growth in 2021.

On the other hand, preliminary third-quarter GDP data showed that the economy contracted between July and September, the first quarterly decline since the pandemic recovery began, in part due to problems in the auto sector.

According to a forecast from the rating agency Fitch, the semiconductor shortage is likely to continue at least for the first half of 2022, although some industry players see that the situation begins to stabilize.

General Motors Silao

General Motors de Silao, Guanajuato

One of them is General Motors, the largest automaker in Mexico, who said earlier this month that it is experiencing “better flow of semiconductors”, and that the first week of November was the first time since February that none of its North American assembly plants were idle for lack of chips.

In Aguascalientes, the automotive industry is an important pillar of the economy and employs some 46,000 direct workers and 120,000 indirect. Almost a third of the state’s GDP comes from this sector, according to Manuel Alejandro González, secretary of Economic Development of Aguascalientes.

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