Tesla confirms it canceled order with German supplier SHW
Reuters
Published Jan 26, 2017 03:59PM ET
Updated Jan 26, 2017 04:10PM ET
Tesla confirms it canceled order with German supplier SHW
BERLIN (Reuters) - Electric car maker Tesla Motors Inc (O:TSLA) confirmed on Thursday it was the customer that canceled a large order with German supplier SHW (DE:SW1), but denied it had anything to do with the new U.S. administration.
The loss of the 100 million euros ($107 million) order sent shares in SHW, which assembles pumps and engine components as well as brake discs, to a four-month low on Tuesday.
German media reports said the cancellation resulted from political pressure after U.S. President Trump met chief executives, including Tesla boss Elon Musk, on Monday.
A spokeswoman for Tesla Europe said on Thursday the order was canceled because the supplier's product did not meet its technical standards.
"The main reason why we now confirm that we canceled the order is to counter those utopian claims that we were acting in response to political pressure," she said. "The fact is the order was canceled because technical standards weren't complied with."
SHW, which had declined to name the company behind the canceled order, had said on Tuesday the customer felt technical specifications for axle-drive pumps failed to meet its requirements, but added that it did not accept the reason.
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Written By: Reuters
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