Suzuki halts Swift production due to Chinese restrictions on rare earth metals

The Japanese company Suzuki Motor has suspended production of the Swift compact hatchback. The reason is China's restrictions on the export of rare earth elements. This is the first Japanese car company that had to stop the assembly line because of China's new policy.

Here's What We Know

Suzuki stopped production of the Swift (except for the Sport version) at its plant in Shizuoka Prefecture on 26 May. The company announced that it will partially resume production from 13 June, and fully - from 16 June. But the reason for the shutdown has not been publicly disclosed.

According to Japan Today, the production pause is due to delays in the supply of components containing rare earth metals.

The Chinese government in April imposed export restrictions on seven types of rare earth elements in retaliation for U.S. tariffs. The problems have already begun to affect production in the U.S. and Europe.

Rare earth elements are needed to make magnets in electric motors, batteries and electronic components. China controls most of the world's production of these materials, so the restrictions are hitting the global auto industry particularly hard.

Source: Japan Today