Suzuki Halts Swift Production in Japan as China Restricts Rare Earth Exports

Suzuki Motor suspended production of its Swift compact car in Japan due to parts shortages caused by China's restrictions on rare earth exports, marking the first time Chinese export controls have directly affected a Japanese automaker. The production halt, which excludes the Swift Sport model, ran from May 26 through June 6.

Suzuki will partially restart Swift production at its Sagara plant on June 13, with full production resuming after June 16, as the "prospect of parts supply is clearer". The company initially cited component shortages without specifying the cause, and a spokesperson declined to comment on the reason for the suspension.

China's decision in April to suspend exports of rare earths and related magnets has disrupted supply chains for automakers, aerospace manufacturers and other industries worldwide. The European Association of Automotive Suppliers reported that only 25% of export license applications made by auto suppliers since April have been approved, with some rejected on procedural grounds.

China produces around 90% of the world's rare earths, minerals that are essential for electric and hybrid vehicle motors. The export restrictions apply globally despite being announced as part of Beijing's response to U.S. trade policies under President Donald Trump.

European automotive suppliers have also suspended operations due to the restrictions. BMW warned that its supplier network was affected by rare earth shortages, while Mercedes-Benz is considering building stockpiles to protect against supply threats. Ford temporarily shut down its Chicago assembly line for the Explorer SUV in late May.

Automakers from General Motors to BMW and major suppliers like ZF and BorgWarner are researching motors with reduced rare earth content to cut reliance on China, but few have scaled production to reduce costs. Some companies have supplies lasting only weeks or months.

India is preparing to send a delegation to China next week, including representatives from automotive industry associations, to discuss fast-tracking approvals for rare earth shipments. EU Trade Commissioner Maros Sefcovic said he and his Chinese counterpart agreed to clarify the rare earth situation as quickly as possible.

The disruption highlights the automotive industry's dependence on Chinese rare earth supplies and the vulnerability of global production networks to geopolitical tensions. Industry representatives warn of increasing threats to production due to this dependency.