Like many other industries, the automotive world had been grappling with supply chain issues for years following COVID. That said, production issues related to the pandemic are pretty much in the rearview mirror. Unfortunately, a whole new supply chain crisis erupted when China took retaliatory action against American companies following Trump’s tariff boondoggle against the country. And while that issue may have recently been settled, Ford CEO Jim Farley revealed that its currently impacting production.
In an interview with Bloomberg, Ford CEO Jim Farley detailed how the company is grappling with the shortage of rare earth magnets. “It’s day-to-day,” said Farley. “We have had to shut down factories. It’s hand-to-mouth right now.” “We’re educating the administration, we’re educating the Chinese leadership about how important these jobs in the Midwest are that are dependent (on rare earth magnets),” he added. These materials are critical in a plethora of parts like windshield wipers and other components, and outside of the auto industry, are critical to smartphones.
Recent negotiations between the United States and China will likely help increase the supply of rare earth magnets, as China agreed to speed up export licenses. That said, Ford CEO Jim Farley stated in the interview that he hadn’t seen any relaxation of the newly restrictive process helping the Blue Oval, although that could change. As Ford Authority reported last week, several Ford suppliers were granted new licenses for rare earth export amid the ongoing trade war initiated by the president. This recent spat has already impacted the 2025 Ford Explorer, as the Chicago Assembly plant was forced to shut down for seven days due to a shortage of rare earth magnets. Given that Farley stated multiple plants shut down over supply chain issues, it’s highly likely that other facilities went offline too, although the exact number hasn’t been made public.
Comments
Wonder how many of those workers voted for Trump and now are losing income. This wound was self inflicted and ill advised.
Yep, absolutely!
This is why we can’t depend on foreign countries for supply trump did not get us in this problem
Maybe Ford management should have considered this when they moved so much production capacity and sources of supply offshore.
What a bunch of BS. From what I’ve seen FORD has lost the ability to make decent vehicles, you know vehicles that have minor recalls for the most part and can get fixed. I had every intention of buying a new Ford vehicle but with recalls and price increases they absolutely put me off of even considering a new vehicle purchase from them at this time. These problems came up before their excuse of rare earth minerals problem.