U.S. President Donald Trump, in office since Friday, may have just claimed his first victim in German industry with his call to bring manufacturing jobs back to the United States.
SHW Group, a maker of oil engine pumps and brake discs, said Tuesday a maker of fully electric cars had canceled an order of electric axle drive pumps for technical reasons, causing its shares to fall by 9.5 percent. The order had a value of around €100 million, or $107 million.
The order was likely from U.S. carmaker Tesla and the cancellation was purely motivated by “political reasons,” German business magazine WirtschaftsWoche, a sister publication of Handelsblatt, claimed, without citing sources.
SHW said the company was “a globally leading producer of fully electric vehicles,” but declined to disclose a name. Tesla declined to comment when contacted by the magazine.
The SHW parts were scheduled for delivery in September, indicating the order was for Tesla’s new mass-market car Model 3, the magazine said.
Tesla’s Chief Executive Elon Musk is an advisor to Mr. Trump, who urged carmakers to cancel building plants outside the United States and buy locally produced car parts instead.
SHW said Tuesday it did "not consider the reasons given by the manufacturer to be valid," and it might sue the producer to claim damages.
On Thursday evening, Tesla confirmed it canceled the order, but denied it was for political reasons.