Amid escalating trade tensions, China has restricted exports of rare earth magnets crucial for car manufacturing, causing turmoil within the automotive industry. Following the implementation of tariffs during the Trump administration, automakers like BMW and Ford reported supply chain challenges, risking production shutdowns. While some exports have resumed, the overall supply has significantly decreased. Companies are exploring countermeasures, including stockpiling components and closely monitoring the situation to mitigate risks associated with these critical materials.
"Carmakers and parts suppliers in Europe and the US are scrambling to shift supply chains and warning of imminent production shutdowns as Chinese restrictions on rare earth metals and magnets push the industry to the brink of a serious supply shock."
"Although production at its vehicle plants was running on schedule, BMW was in discussions with suppliers to implement countermeasures, the spokesperson added."
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