Chips Shortage Limits Auto Production in Brazil, Automakers Association Says

Fiat Chrysler Automobiles assembly workers build a 2020 Argo model at the Assembly Plant in Betim near Belo Horizonte, Brazil, on May 20, 2020. Washington Alves/Reuters

SAO PAULO—Automaker’s plants in Brazil have reached a “production ceiling” after the first five months of the year, below pre-pandemic levels, due to a shortage of computer chips, the South American nation’s automakers association said on Tuesday.

A semiconductor shortage has been affecting the production of chips and may reduce the global number of automobiles produced by 3 percent to 5 percent this year.