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The Next Car Production Crisis Could Be Caused by Magnet Shortage

The Drive

10 hours 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@

What's Good for Politicians Is Good for General Motors

Wall Street Journal

16 hours ago

Automotive
Wall Street Journal

What's Good for Politicians Is Good for General Motors

General Motors CEO Mary Barra earned $29.5 million last year, and it's hard to argue that she isn't earning her keep. The automaker sold more cars in the U.S. than any other company last year, and its profits have doubled in her 11 years as CEO. Credit her ability to please her most important customers—politicians. Their command is her wish. While doubling down on manufacturing profitable gas guzzlers, Ms. Barra promoted electric vehicles to ingratiate herself to Democrats who want to eliminate the products that churn out profits for her company. She again proved her flexible principles last week by praising President Trump's auto tariffs, which the company estimates will dent its profits by $5 billion this year. 'I think tariffs is one tool that the administration can use to level the playing field,' she said. What she omitted is that the playing field has been tilted in GM's favor for decades by a 25% tariff on pickup trucks, which gives domestic automakers an effective monopoly. Also: Mr. Trump's new 25% tariffs on all cars and parts not made in the U.S. will hurt GM, but they will wallop its foreign competitors even more. In 2018 Ms. Barra got a crash course in politicking when she announced a corporate restructuring that involved closing four U.S. plants that produced low-selling sedans. Her goal was to make GM leaner and more profitable. In this she succeeded, but she blundered by not throwing a bone to Mr. Trump, who thinks CEOs answer to him.

Nine cars confirmed for discontinuation in 2025 – including two iconic convertibles & beloved hot hatchback

The Sun

a day ago

Automotive
The Sun

Nine cars confirmed for discontinuation in 2025 – including two iconic convertibles & beloved hot hatchback

WE'RE almost at the halfway point of 2025 in what's been a whirlwind six months or so in the motoring world. The UK is in the midst of a transition to electric vehicles which comes with new regulations and economic pressures, while the industry continues to adapt to changing consumer behaviour. Elsewhere, the Ford Puma remains the nation's favourite motor, Tesla's favouritism is beginning to dip and Nissan's problems are going from bad to worse. We've also had some exciting car releases, from the Alpine A290 hot hatchback and Dacia Bigster SUV, through to the outrageous Aston Martin Valhalla. We've also learned of the demise of some of our favourite models - ready to drive off into the sunset. Here are some of the biggest nameplates reaching the end of their production runs in 2025. Lexus LS 7 After some 35 years on sale, the ultra-luxury Lexus LS saloon has finally reached the end of the road after a sustained period of poor sales. Once described as a game-changer when it hit dealerships in 1990, the LS helped establish Toyota's plush sub-brand as a challenger to the elite carmakers of Europe and America. Marketed with a cheaper starting price, four further generations followed, with the final one, the LS 500, launching in 2017 before it was updated in 2020. Before it was removed, the LS range's price tag began at £101,000, rising to £128,000 for the Takumi version. However, just 39 of the hybrid V6-powered saloons have been purchased since 2020, of which just three were sold last year. Mazda2 7 After 10 years on sale, Mazda confirmed back in February that its Mazda2 supermini can no longer be ordered. A brief history of the Mazda MX-5 Often praised for being fun to drive, the petrol-powered and mild-hybrid versions of the hatchback have seemingly been replaced by Mazda2 Hybrid - essentially a rebadged Toyota Yaris. Despite two face-lifts in 2019 and 2023, which both added extra tech to the compact car, the car's near ten-year run in UK sales has finally come to an end. Mazda did not explain why the vehicle was cancelled, but a spokesperson told Autocar: "As we move towards increased electrification of our cars, the Mazda 2 Hybrid meets consumer demand in the B-segment and is a step in our journey to ensure all our cars have some form of electrification by 2030." Mazda MX-30 7 Mazda also called time on the MX-30 - its first and only electric car - after just a four-year run. Criticised throughout its existence for its limited range and cramped cabin, the subcompact crossover SUV - offered as an EV or plug-in hybrid - was launched in the UK in 2021, with a view of taking on the likes of the Kia Soul EV and Peugeot e-2008. But it was never a popular choice among drivers, largely because of its modest range of just 124 miles. This was down to its smaller battery size, which was chosen to reduce the car's weight - and while this improved its handling and lowered its CO2 emissions during production, it also resulted in persistent range anxiety among drivers. While the fully electric MX-30 has been axed, the plug-in hybrid version remains on sale in the UK. Porsche Boxster/Cayman Porsche has officially announced the long-anticipated news that production of the petrol-powered 718 Boxster and 718 Cayman will come to an end. While no replacement for the iconic models has been announced, it's assumed an electric counterpart will eventually be released - though details remain scarce and no release date has been confirmed. For now, production is scheduled to continue until October 2025, including for the UK market. Frank Wiesmann, product communications manager for Porsche Cars North America, recently told Road & Track: 'Production for all current 718 Boxster and 718 Cayman variants, including RS models, is scheduled to end in October of this year.' In Europe, sales of the 718 Boxster and Cayman stopped in summer 2024 due to new EU cybersecurity regulations - although the UK market remained unaffected by these EU rules post-Brexit. This led to Porsche's head of production, Albrecht Reimold, confirming in an interview with Automobilwoche that the petrol-powered 718 models will end production globally by October 2025, except in markets already affected by the EU regulations. Nissan GT-R We're cheating here a little, because in the UK, the mighty Nissan GT-R has been unavailable to buy for a little while now. The GT-R R35 was first unveiled at the Tokyo Motor Show in 2007 before being updated and facelifted many times, most recently in 2023. However, in February, Nissan announced production of the iconic motor was to end in Japan - meaning it had lost its final market. Nissan had already discontinued deliveries of the R35 in Europe and the UK in March 2022, while Australia and New Zealand lost them even longer ago in October 2021. North America was the second-last to fall, with production wrapping up there in October last year. Furthermore, with Nissan facing financial difficulties recently, plans to have the GT-R's successor be a fully electric model could be derailed. Audi A1 & Q2 7 We were stunned back in March when Audi revealed they were axing the incredibly popular A1 and Q2 models next year. Both cars, which are big sellers for the German brand - especially the A1 hatchback - are also the two cheapest among their range, but they now reached the end of the road with Audi ready to launch a new entry-level electric car as an indirect replacement. Claimed to sit beneath the top selling Audi Q4 e-tron, the upcoming EV will serve as an alternative to the A3 hatchback and Q3 crossover. Gernot Dollner, Audi's CEO, revealed they "will end production of the A1 and Q2" in 2026 "and there definitely will be no successor for the A1." He added the brand 'will have models in the lower A-segment" and that 'we will also see the car that will enter production next year in Ingolstadt, which will be our entry BEV in the A-segment". Ford Focus ST 7 After 23 years, the Ford Focus ST has been taken off sale in the UK - with production of the hot hatchback set to end in November. The Focus ST had been open for orders as recently as April, but has seemingly disappeared from dealer price lists in an update issued on 26 May. Many of the other variants of the Focus are still available to order, but the ST is no longer one of those - as clicking on the Ford UK's configurer leads to a dead end. Later confirmed by Ford UK to Autocar, there is - at the time of writing - still stock parked up in dealerships across the country. In a statement, the Blue Oval said: 'There are no new factory orders available for the Focus ST at the moment, but there are around 170 built and unsold currently available within the UK dealer network. 'This includes 30 of the special ST Edition variant in Azura Blue.' Better get in fast.

Why Is Penske (PAG) Up 4.3% Since Last Earnings Report?

Yahoo

2 days ago

Automotive
Yahoo

Why Is Penske (PAG) Up 4.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Penske Automotive (PAG). Shares have added about 4.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Penske due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. It turns out, estimates revision have trended upward during the past month. At this time, Penske has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Penske has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Penske belongs to the Zacks Automotive - Retail and Whole Sales industry. Another stock from the same industry, Sonic Automotive (SAH), has gained 12% over the past month. More than a month has passed since the company reported results for the quarter ended March 2025. Sonic Automotive reported revenues of $3.65 billion in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $1.48 for the same period compares with $1.36 a year ago. For the current quarter, Sonic Automotive is expected to post earnings of $1.59 per share, indicating a change of +8.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.6% over the last 30 days. Sonic Automotive has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

China Auto Body Slams ‘Vicious Competition' After BYD Price Cuts

Bloomberg