Gary Zhou 
Key Points
- 🤝 Union Targeting Giga Berlin: Swedish union IF Metall is targeting Giga Berlin, and Hydro Extrusions, a supplier of aluminum profiles for Tesla’s Model Y, is a key player in the union’s strategy.
- 📉 Impact on Hydro Extrusions: The union’s strike has halted deliveries from Hydro Extrusions to Tesla for almost two weeks, potentially jeopardizing the company’s relationship with one of its largest customers.
- 💼 Fear of Losing Tesla as a Customer: Hydro Extrusions, owned by Norwegian giant Hydro, fears losing Tesla as a customer due to the ongoing strike. The company employs 850 workers and is concerned about the potential economic strain.
- 🚧 Strained Business and Economic Concerns: The strike has affected Hydro Extrusions from the beginning, causing revenue loss during an already economically challenging time. The CEO expresses concerns about the future impact, especially in the rapidly growing market for aluminum parts for electric cars.
- 📉 Headcount Reduction Approval: Hydro Extrusions has received approval to reduce its headcount if necessary, indicating the severity of the situation and potential long-term consequences.
- 🎯 Union’s Perspective: IF Metall strike general Veli-Pekka Säikkälä argues that Hydro Extrusions consciously took a risk by doing business with a company without a collective agreement. The union aims to increase pressure on Tesla by targeting strategic suppliers like Hydro Extrusions.
In the ever-evolving landscape of the automotive industry, disruptions can come from unexpected quarters. In this blog post, we delve into the intricacies of the recent IF Metall union strike targeting Tesla’s Giga Berlin supplier, Hydro Extrusions. From the immediate impacts on deliveries to the broader implications for both Hydro Extrusions and Tesla, let’s navigate through the complexities of this labor dispute and its potential ramifications.
Understanding the Union’s Strategy
IF Metall, a prominent Swedish union, has strategically set its sights on Giga Berlin. Hydro Extrusions, a key supplier providing aluminum profiles for Tesla’s Model Y, finds itself at the center of this targeted strategy.
The strike orchestrated by IF Metall has resulted in a halt in deliveries from Hydro Extrusions to Tesla for nearly two weeks. This disruption poses a significant challenge to the supply chain dynamics and operational continuity for both companies.
Hydro Extrusions’ Dilemma
Hydro Extrusions, a subsidiary of Norwegian giant Hydro, is grappling with the fear of losing Tesla as a customer. With the ongoing strike, the company faces the daunting prospect of strained relations with one of its largest and most influential clients.
The strike has not only impacted Hydro Extrusions in terms of revenue loss but has also intensified the economic challenges the company faces. The CEO, Jonas Bjuhr, highlights the broader concern about the future impact, especially in the swiftly growing market for aluminum parts in electric vehicles.
In response to the escalating crisis, Hydro Extrusions has obtained approval to reduce its workforce if deemed necessary. This drastic measure underscores the severity of the situation and the potential long-term consequences affecting the company’s operations and employees.
Union’s Perspective
IF Metall’s strike general, Veli-Pekka Säikkälä, argues that Hydro Extrusions consciously assumed a risk by engaging in business without a collective agreement. The union’s strategic approach aims to increase pressure on Tesla by targeting key suppliers like Hydro Extrusions.
