US auto suppliers say immediate action needed on China rare earths restrictions
A major US auto parts group warned on Wednesday that China's new export rules on rare earths could soon cause serious problems for car production. These rare earth materials are used in cars and cameras, and China controls over 90% of the world's supply.
This follows news that China is using a tracking system to monitor and control who is buying and selling rare earths,
Car giants like GM (GM), Ford (F), and Toyota (TM) are already feeling the pressure. Ford has paused production of its Explorer SUV because of rare earth shortages.
Foreign car companies are also feeling the heat. Suzuki Motor's suspended production of one of its vehicles due to rare earth restrictions, and German carmaker Mercedes-Benz (MBG.DE, MBGAF) is looking into building rare earth stockpiles with one of its key suppliers.
