Production of Suzuki Swift Halted Due to Rare Earth Shortage
The Suzuki company has temporarily suspended production of the Swift model due to a shortage of components containing rare earth elements. These materials are critically important for the production of various parts, including those used in automobiles.
In April, China, which is the main supplier of rare earths, introduced restrictions on their export. This has already impacted global supply chains. Swift production ceased on May 26th, with a partial resumption possible no earlier than June 13th.
Impact on Other Manufacturers
The European Association of Automotive Suppliers (CLEPA) warned that the Chinese restrictions have already caused serious disruptions in supply chains. This affects both internal combustion engine vehicles and electric vehicles, threatening thousands of jobs in the EU.
We are already observing significant disruptions due to China’s export restrictions on rare earth elements and magnets
Some manufacturers, such as Mercedes and Volkswagen, do not yet feel the shortage. However, other companies, including BMW, are facing difficulties. Ford also halted production of the Explorer in May due to a component shortage.
Political Context
The restrictions on rare earth exports may be part of China’s trade policy aimed at pressuring the US to lift tariffs. Despite negotiations between the leaders of the two countries, a quick resolution to the problem is not expected.
Recent data suggests that China has temporarily allowed the export of rare earths to suppliers of Ford, General Motors, and Stellantis. These licenses are valid for up to six months, which may somewhat alleviate the situation for automakers.
During the latest negotiations between the US and China, one of the key topics was precisely rare earth elements. Although no specific agreements have been reached yet, both sides continue the dialogue. Meanwhile, automakers are seeking alternative supply sources or ways to reduce dependence on these materials.