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According to Reuters, Suzuki has suspended production of its popular city car, the Suzuki Swift, due to China’s restrictions on rare earth exports. This is the first Japanese car manufacturer to be impacted by the export limits from the populous nation.
Specifically, Suzuki halted the production of the Swift, excluding the Swift Sport model, starting from May 26th, citing parts shortages as the reason.
Reuters further reports that Suzuki has altered its plans to resume production multiple times. Most recently, the company intended to partially restart Swift production on June 13th before a full resumption on June 16th.
In a statement, the Japanese automaker explained that a “clearer outlook for parts supply” is the reason behind their decision to resume Swift production next week.
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In April, China decided to halt the export of various rare earths and related magnets, disrupting critical supply chains for automakers, aerospace manufacturers, semiconductor companies, and military contractors.
The situation became alarming as global automakers warned of potential production halts. Some European auto parts factories temporarily ceased operations, and Mercedes-Benz is considering protective measures against rare earth shortages.
According to Nikkei Asia, Japan is planning to enhance cooperation with the US on rare earth supply chains in upcoming tariff negotiations.
In Vietnam, the sale of Suzuki Swift was quietly halted in September 2024, likely due to lackluster sales. Recently, the Japanese automaker confirmed bringing back the Suzuki Swift, possibly with a hybrid engine option. The price is expected to increase significantly due to its Japanese origin, unlike the previous Thai-imported model.
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