China's magnet curbs risk halting German and Indian car production
Chinese export restrictions on rare earth metals are causing concern in the German automotive industry – production halts are feared within weeks.
According to Christian Grimmelt from the consulting firm Berylls by AlixPartners, the situation could quickly worsen. “Within four to six weeks, the last stocks could be used up. Then parts of production will have to be shut down,” he tells Wirtschaftswoche.
Indian auto production could grind to a halt within days due to Chinese export restrictions on rare earth magnets, according to company executives and documents from industry groups, Uncertain situation ahead of autumn
With an increasing share of electric vehicles on European roads, the situation is particularly sensitive for manufacturers who have no alternative to Chinese suppliers. If no long-term solutions are found, production disruptions risk affecting not only individual brands, but the entire automotive sector.
The near future will be crucial. If stocks run out without new stable supplies being secured, parts of European vehicle production could be forced to slow down – with broad consequences for the industry, jobs and the ongoing transition to electric power.
DYOR
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