Suzuki Stops Production Of Swift Due To Lack Of Minerals

Suzuki Motor has halted production of the Swift model due to problems with the supply of technological minerals, two sources told Reuters, revealing the Japanese carmaker’s problems sourcing key raw materials in the wake of tougher Chinese export regulations.

Management has announced that it will suspend production of the Swift, except its sports variant, from May 25 to June 6 due to a parts shortage, without giving details.

Production will be restarted on June 13, but on a reduced scale, at the Sagara plant, and full capacity after June 16, since “the conditions for parts procurement are now clearer,” they said on Thursday.

The restriction has disrupted supply chains critical to car and aerospace manufacturers, as well as the semiconductor and military equipment sectors around the world.

Since the beginning of April, suppliers from the automotive sector have submitted hundreds of requests for export licenses to Beijing, and so far, only a quarter have been approved, CLEPA warned. Some requests were rejected with largely procedural explanations, they added.

Due to the lack of export permits in some European plants, the production of car parts has also been suspended, while Mercedes-Benz has announced that they are considering how they can protect itself from the shortage of key raw materials.

German carmaker Volkswagen has been informed that its suppliers have received a limited number of Chinese licenses to export rare minerals. At the moment, we are not experiencing a shortage, they said from VW.

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