In Mexico's auto heartland, workers struggle as chip shortage bites

. The so-called COMPAS plant, which produces the Mercedes-Benz GLB SUV, has experienced"shift reductions or production breaks," a Mercedes-Benz spokesperson said in emailed comments.

The Mexican unit of China-based Minth Group, whose Aguascalientes plant supplies parts to automakers throughout North America, is among the firms trimming workers' hours and cutting jobs. The company has laid off about 20% of its workforce this year, according to Manuel Ando, director of administration and infrastructure for Minth Mexico. That comes on top of previous cuts, with staffing now standing at 1,300, down from around 2,700 prior to the pandemic, he said.

A bipartisan group of US governors recently warned that, due to the chip shortage, automakers in North America lost an estimated 2.2 million vehicles in 2021 and 575,000 industry jobs have been impacted. Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, said this month it would build a $7-billion semiconductor plant in Japan with Sony Group to help ease the shortage, which has also hit manufacturers of smartphones, laptops, and consumer appliances.

MINTH. A view of the facade of Minth plant, a manufacturer for the automotive industry, in Aguascalientes, Mexico, November 9, 2021.Anibal Llamas, quality manager at parts supplier Minth, fears that"the worst is yet to come."

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