Suzuki has been forced to suspend vehicle production because of China’s rare earth export restrictions as Beijing’s tightens controls on critical materials.
Production of the Swift small automotive – excluding the Swift Sport – was halted on May 26, in response to reports, with the corporate citing a shortage of components tied to the export curbs.
The automotive maker has pushed back plans to restart output several times but now expects a partial restart at its Sagara plant in Japan on June 13, with full production to resume after June 16. In a press release, Suzuki said the “prospect of parts supply is clearer,” but acknowledged continued uncertainty in the provision chain.
Suzuki has been forced to suspend vehicle production because of China’s rare earth export restrictions as Beijing’s tightens controls on critical materials.
Production of the Swift small automotive – excluding the Swift Sport – was halted on May 26, in response to reports, with the corporate citing a shortage of components tied to the export curbs.
The automotive maker has pushed back plans to restart output several times but now expects a partial restart at its Sagara plant in Japan on June 13, with full production to resume after June 16. In a press release, Suzuki said the “prospect of parts supply is clearer,” but acknowledged continued uncertainty in the provision chain.
The disruption stems from China’s decision in April to impose export restrictions on several rare earth elements and magnets – key components in each internal combustion and electric vehicles – as a countermeasure to recent US tariffs.
Several European automotive supplier plants and production lines have already been forced to shut down, in response to CLEPA, the European association of automotive suppliers.
“With a deeply intertwined global supply chain, China’s export restrictions are already shutting down production in Europe’s supplier sector,” said CLEPA secretary general Benjamin Krieger. “We urgently call on each the EU and Chinese authorities to have interaction in a constructive dialogue to make sure the licensing process is transparent, proportionate, and aligned with international norms.”
He said that for the reason that recent controls took effect, a whole bunch of export licence applications have been submitted, but only around 1 / 4 have reportedly been approved. Some requests have been denied on procedural grounds or have required disclosure of IP-sensitive information.
While export controls on dual-use items should not unusual, critics argue that China’s implementation lacks the transparency and lead time typically expected in global trade. The present approach, he said, not only threatens short-term supply but undermines long-term trust.
Krieger warned that continued disruption could speed up European efforts to diversify supply chains and spend money on rare earth-free technologies, but these solutions won’t resolve the immediate crisis.
“These measures offer no short-term solutions and can’t address the acute risks currently facing supply chains,” he said. “Additionally they threaten automotive production and hundreds of jobs within the European Union.”
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