The executive directors of the largest automotive companies advertised about the upcoming shortage of rare natural magnets from China, which are used in everything – by windshield wipers to the wheel locking sensor.
In a previously unpublished letter of 9. Maja Trump Administration officials, a trading group representing General Motors, Toyota, Volkswagen, Hyundai and other large car manufacturers expressed serious concern.
Critical components in danger
“Without reliable access to these elements and magnets, car suppliers will not be able to produce key automotive components, alternators, various engines, loudspeakers, lights, motors, steering wheels, and cameras.”
In the letter, which also signed the Association of Vehicle Vehicle Memo, it is said that, without these essential car components, it was only a matter of time when American factories will terminate production. “In severe cases, this could mean a reduction in production volume or even stopping production tapes for the folding of the vehicle,” it is listed.
And the CEO of the Alliance John Bozzella and the Chief Executive Director of MEMA Bill Long told Reuters that the situation was not resolved and still causing concern. They expressed gratitude to Trump Administration for high-level engagement in order to prevent disorders in the production of cars in the US and in the supply chain.
Bozzella pointed out that the issue of cars was on the agenda during the Talking Minister of Finance Scott Bessent and the American Jamieson Greer’s Trade Representative with Chinese colleagues in Geneva earlier this month.
Greer told CNBC that China agreed to abolish restrictions on the export of rare natural magnets to American companies, but not to act fast enough to allow access to key American industries.
Reduced magnet export from China, China called due to semiconductor
China, which controls more than 90 percent of the global magnet processing capacities used in various industries, has introduced export restrictions in early April, requiring exporters to obtain Peking permits. Export of these magnets from China halved in April.
In publishing on social networks, US President Donald Trump accused China to violate the conditions of agreement achieved this month on the temporary abolition of customs and other trade constraints. “China, maybe not surprising for some, completely violated his agreement with us,” Trump stated on his platform Truth Social.
The Chinese Embassy in Washington answered him by saying that the United States was abusing export control in the semiconductor sector.
(Vijesti.ba)
