In a recent development, Hydro Extrusions, a key supplier of aluminum profiles for Tesla's Model Y at the Giga Berlin plant, is feeling the impact of the ongoing strike organized by Swedish union IF Metall. The strike, aimed at pressuring Tesla's operations, has halted deliveries to the EV manufacturer for nearly two weeks, raising concerns for Hydro Extrusions' future relationship with its prominent customer.

Owned by Norwegian corporation Hydro, Hydro Extrusions employs approximately 850 individuals in Vetlanda and Finspång. While the company operates under a collective agreement, it now faces the possibility of losing Tesla as a customer due to the strike. CEO Jonas Bjuhr expressed worry about the disruption to their business with Tesla, especially considering the rapidly growing market for aluminum parts in electric vehicles.

Speaking to Dagens Nyheter (DN), Bjuhr highlighted that the strike has impacted the company since its inception. Not only has revenue been lost, but the CEO also stressed the long-term concerns for the company's future. He warned that if the strike continues for an extended period, it could diminish the confidence of Swedish suppliers, enabling competitors to take over.

When asked about the number of employees affected by the strike, Bjuhr noted that approximately 20 employees, primarily in Vetlanda, are covered by the ongoing strike. However, in an attempt to mitigate the impact, Hydro Extrusions has managed to relocate these employees to other departments. Nevertheless, there remains a threat of redundancies if the strike persists. The company has already obtained approval to reduce its workforce if necessary.

IF Metall strike general, Veli-Pekka Säikkälä, countered the claim that Hydro Extrusions is unjustifiably caught up in the union's strikes against Tesla. Säikkälä argued that Hydro willingly engaged in business with a company lacking a collective agreement, thus knowingly assuming certain risks. The union's objective is not to target Tesla directly in Sweden but rather to exert pressure on the American group and its business prospects. The specific focus of the strike is Tesla's factory in Berlin, which heavily relies on deliveries from Hydro Extrusions.

As the strike continues, uncertainty looms over Hydro Extrusions and its relationship with Tesla. The implications of this supply disruption, coupled with the potential loss of a major customer, could significantly impact the company's future prospects. Meanwhile, IF Metall remains steadfast in its efforts to increase pressure on Tesla to achieve its objectives.

While negotiations between IF Metall and Tesla have yet to yield any notable progress, the strike continues to be a cause for concern for all parties involved. The ultimate outcome of this standoff remains uncertain, but its consequences reverberate across the automotive industry, particularly for Hydro Extrusions and its employees.