Latest news with #JohnBozzella
Yahoo
15 hours ago
- Automotive
- Yahoo
China's rare-earth export curbs risk auto production
The automotive industry faces a critical challenge as China's rare-earth export curbs threaten to disrupt global car production. Executives from leading car manufacturers have raised alarms about the potential shortage of rare-earth magnets, vital components in various automotive applications, from windshield-wiper motors to anti-lock braking sensors, reported Reuters. In a letter dated 9 May, the head of a major trade group, representing General Motors, Toyota, Volkswagen, Hyundai, and other key players, addressed the Trump administration officials regarding the severity of the situation. The letter was co-signed by MEMA (Motor & Equipment Manufacturers Association), a supplier trade association. The Alliance for Automotive Innovation wrote the Trump administration: "Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras.' The letter warned that US vehicle factories could face disruptions without these essential components. The groups said: "In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines.' Alliance CEO John Bozzella and MEMA CEO Bill Long, in conversations with Reuters on Friday, stressed that the issue remains unresolved and is a significant concern. They thanked the Trump administration for its high-level engagement to prevent disruption to US auto production and the supply chain. Bozzella highlighted that the automotive issue was discussed during talks in Geneva earlier this month between Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer, and their Chinese counterparts. China, which controls over 90% of the global processing capacity for the magnets in question, imposed restrictions in early April that require exporters to obtain licenses from Beijing, a process that has proven complex and opaque. Exports of rare-earth magnets from China halved in April as companies struggled with the licensing process, which sometimes demands hundreds of pages of documentation. President Donald Trump, in a social media post on Friday, accused China of breaching a recent agreement intended to ease tariffs and trade restrictions. In response, China's embassy in Washington claimed it was the US that was misusing export controls, particularly in the semiconductor sector. A US official familiar with the talks informed the news agency that the Geneva discussions only covered tariffs and Chinese non-tariff countermeasures, not US export controls. The official expressed frustration over Beijing's slow pace in issuing rare-earth export licenses, which could trigger retaliatory export control measures from Washington if automakers, vulnerable to mineral shortages, are forced to cease production. While a few licenses have been issued, including to some Volkswagen suppliers, Indian automakers report they have received none and may have to halt production as early as June. German auto parts maker Bosch also indicated this week that its suppliers are struggling with China's stringent procedures for export licenses. "China's rare-earth export curbs risk auto production – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Drive
a day ago
- Automotive
- The Drive
The Next Car Production Crisis Could Be Caused by Magnet Shortage
The latest car news, reviews, and features. Our reliance on rare-earth minerals is creating a problem: materials shortages. This time, the much-needed resource is magnets, which currently face export restrictions from China. An alliance of automakers and suppliers warns that without a trade resolution (i.e., less paperwork would help), production disruptions are inevitable. In a new Reuters report, the Alliance for Automotive Innovation (AAI) and the Motor & Equipment Manufacturers Association (MEMA) sent a joint letter to the Trump administration on May 9 about the groups' concerns regarding the availability of rare-earth magnets. A key point of frustration was China's seemingly less-than-expedient effort in issuing export licenses. Without the earth elements, already interrupted assembly lines could find themselves in further turmoil. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components,' the groups explained. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines.' These vehicle parts include everything from windshield wiper motors, lights, and automatic transmissions to seatbelts, cameras, and anti-lock braking sensors. So, yeah, pretty much everything. And yet, three weeks later, the situation remains unresolved, said Alliance CEO John Bozzella and MEMA CEO Bill Long to Reuters . The AAI comprises a who's who of automotive manufacturers, such as BMW Group, Ford, General Motors, Honda, Hyundai, Stellantis, Toyota, and Volkswagen. MEMA represents more than 1,000 members (consisting of OE and aftermarket parts suppliers.) Switching to a non-China supplier would also be a significant feat when more than 90% of the planet's rare-earth production capacity, a group of 17 elements, is in China. There is one U.S.-based mine located in Oklahoma, but it still relies on China for processing. E-waste recyclers are working on increasing production, however, such expansion will take years, not days or weeks. Regarding magnets specifically, Reuters says that exports from China were down by half in April, largely due to a vague permit application that sometimes calls for 'hundreds of pages of documents.' Ain't nobody got time for that. Furthermore, the U.S. accused China of violating an agreement that temporarily rolls back certain tariffs and other trade restrictions. In return, China says the U.S. is abusing its export controls within the semiconductor sector. A U.S. official told Reuters that Beijing had promised to issue the rare-earth export licenses, but 'moving slowly' in doing so. And there was potential for Washington retaliation if automotive production were forced to shut down. You know, more than it already has. As the proverb goes, 'When elephants fight, it is the grass that suffers.' So, here we are, builders and buyers alike, left holding the bag. Got a tip? Drop us a line at tips@
Kuwait Times
2 days ago
- Automotive
- Kuwait Times
Car makers warn ‘rare-earth curbs could halt production'
China's export restrictions impact global auto production WASHINGTON: Global auto executives are sounding the alarm on an impending shortage of rare-earth magnets from China – used in everything from windshield-wiper motors to anti-lock braking sensors – that could force the closure of car factories within weeks. In a previously unreported May 9 letter to Trump administration officials, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised urgent concerns. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,' the Alliance for Automotive Innovation wrote the Trump administration. The letter, which also was signed by MEMA, The Vehicle Suppliers Association, added that, without those essential automotive components, it would only be a matter of time before US vehicle factories are disrupted. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines,' the groups said. Both Alliance CEO John Bozzella and MEMA CEO Bill Long told Reuters on Friday the situation was not resolved and remained a concern. They expressed gratitude for the Trump administration's high-level engagement to prevent disruption to US auto production and the supply chain. Bozzella noted that the automotive issue was on the agenda during Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer's talks with their Chinese counterparts in Geneva earlier this month. Greer told CNBC on Friday that China had agreed to lift restrictions on the exports of rare-earth magnets to US companies and was not moving fast enough to grant access for key US industries. 'We haven't seen the flow of some of those critical minerals as they were supposed to be doing.' China - which controls over 90 percent of global processing capacity for the magnets used in everything from automobiles and fighter jets to home appliances - imposed restrictions in early April requiring exporters to obtain licenses from Beijing. Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes require hundreds of pages of documents. In a social-media post Friday, President Donald Trump accused China of violating terms of a deal reached this month to temporarily dial back tariffs and other trade restrictions. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. China's embassy in Washington responded by saying it was the US that was abusing export controls in the semiconductor sector. A US official with knowledge of the talks told Reuters that only tariffs and Chinese non-tariff countermeasures were covered in Geneva talks, and that US export controls were not part of the deal. The official also expressed frustration that Beijing appeared to be moving slowly on promises to issue rare-earth export licenses, which could kick start export control retaliation by Washington if automakers vulnerable to shortages of the minerals are forced to halt production. While a handful of licenses have been granted, including to some Volkswagen suppliers, Indian automakers say they still have received none and will have to stop production in early June. German auto parts maker Bosch said this week that its suppliers have been bogged down by China's more-rigorous procedures to receive export licenses. A Bosch spokesperson described the process as 'complex and time-consuming, partly due to the need to collect and provide a lot of information.' — Reuters
The Sun
3 days ago
- Automotive
- The Sun
Car makers warn China's rare-earth curbs could halt production
WASHINGTON: Global auto executives are sounding the alarm on an impending shortage of rare-earth magnets from China – used in everything from windshield-wiper motors to anti-lock braking sensors – that could force the closure of car factories within weeks. In a previously unreported May 9 letter to Trump administration officials, the head of the trade group representing General Motors, Toyota, Volkswagen , Hyundai and other major automakers raised urgent concerns. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,' the Alliance for Automotive Innovation wrote the Trump administration. The letter, which also was signed by MEMA, The Vehicle Suppliers Association, added that, without those essential automotive components, it would only be a matter of time before U.S. vehicle factories are disrupted. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines,' the groups said. Both Alliance CEO John Bozzella and MEMA CEO Bill Long told Reuters on Friday the situation was not resolved and remained a concern. They expressed gratitude for the Trump administration's high-level engagement to prevent disruption to U.S. auto production and the supply chain. Bozzella noted that the automotive issue was on the agenda during Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer's talks with their Chinese counterparts in Geneva earlier this month. Greer told CNBC on Friday that China had agreed to lift restrictions on the exports of rare-earth magnets to U.S. companies and was not moving fast enough to grant access for key U.S. industries. 'We haven't seen the flow of some of those critical minerals as they were supposed to be doing.' China - which controls over 90% of global processing capacity for the magnets used in everything from automobiles and fighter jets to home appliances - imposed restrictions in early April requiring exporters to obtain licenses from Beijing. Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes require hundreds of pages of documents. In a social-media post Friday, President Donald Trump accused China of violating terms of a deal reached this month to temporarily dial back tariffs and other trade restrictions. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. China's embassy in Washington responded by saying it was the U.S. that was abusing export controls in the semiconductor sector. A U.S. official with knowledge of the talks told Reuters that only tariffs and Chinese non-tariff countermeasures were covered in Geneva talks, and that U.S. export controls were not part of the deal. The official also expressed frustration that Beijing appeared to be moving slowly on promises to issue rare-earth export licenses, which could kick start export control retaliation by Washington if automakers vulnerable to shortages of the minerals are forced to halt production. While a handful of licenses have been granted, including to some Volkswagen suppliers, Indian automakers say they still have received none and will have to stop production in early June. German auto parts maker Bosch said this week that its suppliers have been bogged down by China's more-rigorous procedures to receive export licenses. A Bosch spokesperson described the process as 'complex and time-consuming, partly due to the need to collect and provide a lot of information.'
The Sun
3 days ago
- Automotive
- The Sun
Car makers warn rare-earth shortage may halt US production
WASHINGTON: Global auto executives are sounding the alarm on an impending shortage of rare-earth magnets from China – used in everything from windshield-wiper motors to anti-lock braking sensors – that could force the closure of car factories within weeks. In a previously unreported May 9 letter to Trump administration officials, the head of the trade group representing General Motors, Toyota, Volkswagen , Hyundai and other major automakers raised urgent concerns. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,' the Alliance for Automotive Innovation wrote the Trump administration. The letter, which also was signed by MEMA, The Vehicle Suppliers Association, added that, without those essential automotive components, it would only be a matter of time before U.S. vehicle factories are disrupted. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines,' the groups said. Both Alliance CEO John Bozzella and MEMA CEO Bill Long told Reuters on Friday the situation was not resolved and remained a concern. They expressed gratitude for the Trump administration's high-level engagement to prevent disruption to U.S. auto production and the supply chain. Bozzella noted that the automotive issue was on the agenda during Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer's talks with their Chinese counterparts in Geneva earlier this month. Greer told CNBC on Friday that China had agreed to lift restrictions on the exports of rare-earth magnets to U.S. companies and was not moving fast enough to grant access for key U.S. industries. 'We haven't seen the flow of some of those critical minerals as they were supposed to be doing.' China - which controls over 90% of global processing capacity for the magnets used in everything from automobiles and fighter jets to home appliances - imposed restrictions in early April requiring exporters to obtain licenses from Beijing. Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes require hundreds of pages of documents. In a social-media post Friday, President Donald Trump accused China of violating terms of a deal reached this month to temporarily dial back tariffs and other trade restrictions. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. China's embassy in Washington responded by saying it was the U.S. that was abusing export controls in the semiconductor sector. A U.S. official with knowledge of the talks told Reuters that only tariffs and Chinese non-tariff countermeasures were covered in Geneva talks, and that U.S. export controls were not part of the deal. The official also expressed frustration that Beijing appeared to be moving slowly on promises to issue rare-earth export licenses, which could kick start export control retaliation by Washington if automakers vulnerable to shortages of the minerals are forced to halt production. While a handful of licenses have been granted, including to some Volkswagen suppliers, Indian automakers say they still have received none and will have to stop production in early June. German auto parts maker Bosch said this week that its suppliers have been bogged down by China's more-rigorous procedures to receive export licenses. A Bosch spokesperson described the process as 'complex and time-consuming, partly due to the need to collect and provide a lot of information.'
