Automakers Say Magnesium Shortage Not a Problem, for Now

Automakers Say Magnesium Shortage Not a Problem, for Now
A worker makes final checks at the serial production BMW i3 electric car in the BMW factory in Leipzig, Germany, on Sept. 18, 2013. Fabrizio Bensch/Reuters
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BERLIN/LONDON—European automakers reeling from a global chip shortage have in recent days hastened to assure shareholders that shortages of magnesium are not, for now, a risk to their production plans.

However, car part suppliers and industry associations warn that if production in China, which accounts for 85 percent of global magnesium supply, does not pick up pace soon, automakers could be facing significant shortfalls of the material.