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Mercedes says no supply chain disruptions after China export concerns

Published by Global Banking & Finance Review

Posted on June 30, 2025

1 min read

· Last updated: January 23, 2026

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Mercedes says no supply chain disruptions after China export concerns
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STUTTGART (Reuters) -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

Mercedes-Benz Reports No Production Disruptions Amid China Export Issues

STUTTGART (Reuters) -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.

(Reporting by Ilona Wissenbach, Writing by Friederike Heine; editing by Matthias Williams)

Key Takeaways

  • Mercedes-Benz reports no production disruptions.
  • China's export restrictions on rare earths pose a risk.
  • Mercedes is vigilant about supply chain risks.
  • Supply of Chinese rare earth magnets is stabilizing.
  • Potential investment in US manufacturing is considered.

Frequently Asked Questions

Has Mercedes-Benz experienced any supply chain disruptions?
No, Mercedes-Benz has not experienced any disruptions to production due to limited raw material exports from China.
What is the current status of rare earth supply for Mercedes-Benz?
Mercedes-Benz remains vigilant over supply chain risks, particularly regarding rare earths, but has not faced any issues to date.
How is Mercedes-Benz preparing for potential supply chain risks?
The company has a clear view of its supply chain exposure and is prepared to act if necessary.
What recent actions has China taken regarding rare earth exports?
China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs.
Is Mercedes-Benz considering further investments in production?
Yes, Mercedes is assessing whether further investment in parts or engine production is needed to enhance supply chain stability in the U.S.

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