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.
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