Mercedes says no supply chain disruptions after China export concerns

STUTTGART: There has been no disruption to production due to limited raw material exports from China at German carmaker Mercedes-Benz, a senior executive said on Monday.

Joerg Burzer, head of production at Mercedes, said the company remained vigilant over supply chain risks, particularly a shortage of rare earths, but had not experienced any issues to date.

“There’s been no incident so far - I expect it will stay that way,” Burzer told reporters, adding that the automaker had a clear view of its supply chain exposure and was prepared to act if necessary.

China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs.

But the threat of mass shutdowns across the automotive supply chain is fading as the supply of Chinese rare earth magnets begins to flow again.

Mercedes is continuing to assess whether further investment in parts or engine production is needed to support manufacturing in the United States, which would enhance supply chain stability and sustainability, Burzer said.