Latest news with #productioncut
Zawya
8 hours ago
- Automotive
- Zawya
India's Maruti Suzuki cuts near-term EV production amid rare earths crisis
Maruti Suzuki has cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs. India's top carmaker, which said on Monday it had not seen any impact yet from the supply crisis, now plans to make about 8,200 e-Vitaras between April and September, versus an original goal of 26,500, according to a company document seen by Reuters. It cited "supply constraints" in rare earth materials that are vital in making magnets and other components across a range of hi-tech industries. Maruti still plans to meet its output target of 67,000 EVs for the year ending March 2026 by ramping up production in subsequent months, the document said. China's curbs on some rare earth exports have rocked the global auto industry, with companies warning of severe supply chain disruptions. While some companies in the United States, Europe and Japan are seeing supplies easing as they secure licences from Beijing, India is still waiting for China's approval amid fears of production stoppages. Launched amid much fanfare at India's car show in January, the e-Vitara is crucial to Maruti's EV push in the country, marking its entry in a segment that Prime Minister Narendra Modi's government wants to grow to 30% of all car sales by 2030 from about 2.5% last year. The setback could also hurt parent Suzuki Motor, for which India is the biggest market by revenue and a global production hub for EVs. The bulk of the made-in-India e-Vitaras are earmarked for export by Suzuki to its major markets like Europe and Japan around summer 2025. Maruti told reporters last week the rare earths issue had no "material impact" on the e-Vitara's launch timeline. Chair RC Bhargava said there was "no impact at the moment" on production, local media reported on Monday. Maruti and Suzuki did not respond to requests for comment on Tuesday. Maruti shares trading on the Indian stock exchange fell as much as 1.4% to the day's low after the news. Maruti is yet to open bookings for the e-Vitara with some analysts warning it is already late to launch EVs in the world's third-largest car market where Tesla is also expected to begin sales this year. Under its previous plan "A", Maruti was to produce 26,512 e-Vitaras between April and September - the first half of the fiscal year. Under the revised plan "B", it will manufacture 8,221, the document showed, indicating a two-thirds cut in its production schedule. However, in the second half of the financial year - between October and March 2026 - Maruti plans to ramp up production to 58,728 e-Vitaras, or about 440 per day at its peak, versus a previous target of 40,437 for those six months under plan A. Two supply chain sources confirmed Maruti's plan to scale back e-Vitara production because of rare earth magnet shortages but were not privy to the exact numbers. The rare earths crisis comes as Maruti is already grappling to recover market share lost to Tata Motors and Mahindra & Mahindra's feature-rich SUVs. These companies also lead India's EV sales. Maruti's share of India's passenger vehicle market is down to 41% from a recent peak of about 51% in March 2020. Suzuki has trimmed its sales target for India to 2.5 million vehicles by March 2031 from 3 million previously, and scaled back its lineup of EV launches to just four, instead of the six planned before, as competition in the South Asian nation intensifies.
Reuters
4 days ago
- Business
- Reuters
Botswana's Debswana curbs diamond production as weak demand persists
GABORONE, June 6 (Reuters) - Botswana's Debswana Diamond Company is temporarily pausing production at some of its mines, cutting output in response to prolonged weakness in the global diamond market, it said on Friday. The global diamond market has experienced a downturn since the second half of 2023, which caused Debswana to cut production by 27% to 17.93 million carats in 2024. Debswana, which accounts for about 90% of Botswana's diamond sales, reported a 46% drop in sales revenues last year. The company, a 50-50 joint venture between Botswana's government and global giant De Beers, now plans to reduce output to 15 million carats in 2025, it said in a statement. "Debswana Diamond Company continues to prudently navigate the challenging market conditions, including sustained low demand across the diamond pipeline and emerging pressures such as U.S.-imposed tariffs," it said. Debswana is temporarily pausing production at Jwaneng Cut 9 and Orapa mines, after suspending operations at its Letlhakane tailing plant and Jwaneng Modular plant in April. The temporary stoppages are expected to deliver significant cost savings across fuel, electricity, and other production consumables, Debswana added. Long-term initiatives such as the Jwaneng underground project, to convert Debswana's flagship open pit mine to an underground operation, will continue, but selected capital projects will be slowed down to save costs. No job involuntary cuts are planned, although the company continues to offer voluntary separation, it added. Botswana gets 30% of its revenue and 75% of its foreign currency earnings from diamonds and the current market downturn resulted in the economy contracting by 3% in 2024. The International Monetary Fund has forecast a further 0.4% contraction this year.
Zawya
21-05-2025
- Business
- Zawya
Egypt's fertiliser producers cut output as gas supplies slashed
Two of Egypt's largest fertiliser producers said on Wednesday they had received official notification of a two-week reduction in natural gas supply to their plants, triggering an immediate drop in production. Abu Qir Fertilizers and Chemical Industries and Misr Fertilizers Production both said in stock exchange statements that they expected output to drop by 30% during the period. The cuts come as Egypt faces growing gas supply challenges ahead of the peak summer season, with the government scrambling to secure additional gas and fuel oil cargoes to meet surging demand. Similar gas supply cuts were imposed on fertiliser producers in June last year, disrupting operations. Natural gas is a key input for fertiliser production, and any disruption can impact both domestic supply and export revenues. Egypt's natural gas output fell from 4.6 billion cubic metres in January 2024 to 3.3 billion cubic metres in February 2025 - the lowest since April 2016, according to the Joint Organisations Data Initiative. Egypt's Ministry of Petroleum has not yet commented on the reductions. Egypt has been working to position itself as a regional energy hub, but chronic gas shortages forced it to become a net importer, enforce rolling blackouts, and rely on foreign funding to meet its domestic needs. (Reporting by Nayera Abdallah and Mohamed Ezz. Editing by Mark Potter)
CTV News
09-05-2025
- Automotive
- CTV News
GM Oshawa plant to be hit with more layoffs next month, union says
FILE - The General Motors plant in Oshawa, Ontario on the final day of production on Wednesday December 18, 2019. THE CANADIAN PRESS/Aaron Vincent Elkaim General Motors is cutting production at its assembly plant in Oshawa, resulting in rotating layoffs, the workers' union says. In a statement on Friday, Unifor said one shift per week will be temporarily laid off. It is not immediately known how many workers will be affected. 'This is especially disappointing given last week's announcement that GM plans to reduce Oshawa from a three-shift to a two-shift operation this fall, leaving workers facing increased instability and uncertainty,' said Unifor, which represents 3,000 workers at the Oshawa assembly. The union added that it will meet with GM to review options to mitigate permanent job loss. Unifor then urged Prime Minister Mark Carney to meet with the CEOs of automakers selling in Canada and review GM's tariff remission on vehicles imported into the country. A union source told CP24 that rotational layoffs are not unusual, and the one next month is not believed to be a result of U.S. President Donald Trump's tariffs. The source said it has more to do with a changeover of models at the plant. Last week's announcement of a shift cutback at the assembly plant, however, was the outcome of America's auto tariffs, albeit not directly referenced in GM's statement, which said the changes were 'in light of forecast demand and the evolving trade environment.' Unifor has said the fall cutback will impact over 700 direct employees and about 1,500 supply chain jobs. Premier Doug Ford said he met with the province's auto mayors earlier Thursday 'to reaffirm our commitment to protect Ontario auto workers and their communities.' 'No matter what, we'll have their backs,' Ford wrote in a post on social media. Ontario's unemployment rate second highest in Canada On Friday, Statistics Canada said the unemployment rate in Ontario last month was 7.8 per cent, the second highest in the country. Newfoundland has the highest jobless rate at 9.6 per cent. The agency said the manufacturing sector, which is facing uncertainty related to U.S. tariffs, led to job losses in April with 31,000. 'This was the first significant decline for manufacturing employment at the national level since November 2024,' StatCan said in its report. Among provinces, Ontario posted the largest decline in the manufacturing sector last month. In Windsor, Canada's auto manufacturing capital, the unemployment rate jumped to 10.7 per cent last month. Earlier this week, Ontario Finance Minister Peter Bethlenfalvy announced that the upcoming budget would expand the Ontario Made Manufacturing Investment Tax Credit to boost the sector amid the trade war. With files from The Canadian Press
Bloomberg
06-05-2025
- Business
- Bloomberg
Kazakhstan Weighs Options to Fulfill Its OPEC+ Cut Obligations
Kazakhstan is considering its options for complying with the country's OPEC+ obligations to cut production, after Saudi Arabia doubled down on its efforts to bring quota-cheats in line over the weekend. 'Kazakhstan always was and is committed to OPEC+ agreement,' the Astana-based ministry said on Tuesday in emailed reply to questions. Central Asia's largest oil producer 'is considering all possible options for meeting its commitments.'
