Audi to reduce shifts temporarily at Mexico plant due to semiconductor shortage

German carmaker Volkswagen's Audi unit said on Thursday a global shortage of semiconductors due to the coronavirus pandemic has led the firm to reduce shifts temporarily at its plant in the central Mexican state of Puebla.

"The lack of availability of semiconductors worldwide has caused production restrictions in the automotive industry. Therefore, Audi Mexico will adjust its production," the firm's Mexico unit said in a statement.

The Audi plant in San Jose Chiapa in Puebla state will operate with one shift, from Monday to Friday, from Jan. 18 to 29, and will operate with two shifts, from Wednesday to Friday, from Feb. 1 to 12, the company said.

Audi's move is a setback for Mexico's automotive industry.

On Monday, Fausto Cuevas, director general of Mexico's AMIA national automotive industry association, forecast that Mexican auto production and exports could grow about 12% this year.