Ford Forced to Idle Multiple US Plants on China Magnet Shortage
Over the past three weeks, Ford Motor Company has temporarily shut down its US manufacturing due to scarcity of magnets made of rare earth minerals, which are essential components involved in US trade disputes with China.
Even after US President Donald Trump claimed earlier this month that talks with China resulted in a deal for Beijing to quickly approve export licenses for rare earths, Farley has been vocal about the company's difficulties procuring the commodities.
In trade negotiations between the US and China, rare earths have become a contentious topic. Cars, iPhones, and other industries heavily rely on the sought-after raw minerals, and China has leveraged its supremacy in the negotiations.
This comes after a scarcity of magnets, which are essential parts for EVs because they enable the motors to run well at high temperatures and speeds, forced Ford to halt production at a Chicago factory earlier this year.
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Additionally, rare-earth magnets are essential for devices like fighter jets and smartphones.
The suspension brings to light Ford's recent supply-chain challenges, which have been made worse by China's ban on rare-earth material exports.
According to the article, Ford is still having trouble with restricted availability even though it has been able to alleviate the issue since the closure. The business is reportedly trying to "move things around" in order to avoid more production setbacks.
Global access became even more difficult in April when China imposed export licensing restrictions for rare-earth magnets.
Currently, around 90 percent of the supply of these essential components comes from China.
Not only is Ford having trouble, but other automakers are also having trouble getting their export licenses approved on time.
If the shortages continue, experts predict that this may result in production halts.
Although the US and China just reached a temporary six-month agreement to resume export permits, the approval rate hasn't increased much.
Additionally, the deal permits China to keep control of certain minerals, which it may use as leverage in upcoming trade talks.
Thousands of Ford trucks have been recalled due to a potentially lethal braking issue.
For 2,345 cars purchased this year between March 19 and May 4, the business issued a recall.
Due to a serious brake issue, customers who purchased an F-250, F-350, F-450, or F-550 Super Duty model have been advised not to operate the trucks.
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The vehicles are marked with an urgent "Do not drive" notice in a recall that was submitted to the National Highway Transportation Safety Administration.