Swift production halted

Suzuki has suspended production of its flagship Swift because of China’s restrictions on rare-earth materials.

It is the first Japanese carmaker to be affected by the export curbs although the halt, which is due to a shortage of components, excludes the Swift Sport version,

Plans to resume output have been pushed back several times. Suzuki now expects a partial restart of production on June 13 with full resumption after June 16 with the “prospect of parts supply clearer” now, the company says.

Suzuki has declined to comment on the reason for the suspension, while Reuters’ sources declined to be identified because they were not authorised to speak on the matter.

China’s decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to carmakers, aerospace manufacturers, semi-conductor companies and military contractors.

Alarm over the situation has grown with global carmakers warning of potential production halts.

Some European parts plants have suspended output and Mercedes-Benz is considering ways to protect against shortages of rare earths.

Japan is planning to propose strengthening co-operation with the US on rare-earth supply chains in upcoming tariff talks. The Nikkei was the first to report on the reason for the Swift’s production suspension, which started on May 26.