Tesla Inc TSLA has reportedly found a new solution to ensure a steady supply of license plates for its new vehicles in Sweden despite ongoing union strikes disrupting the usual procurement process.
What Happened: In late October, IF Metall, a workers’ union representing Tesla mechanics, initiated a strike against the automaker for collective bargaining agreements, a key aspect of the Swedish labor market covering around 90% of the workforce. The strike has gained solidarity from other unions in neighboring Norway, Denmark, and Finland.
Tesla CEO Elon Musk criticized the situation as “insane” when state-owned postal service PostNord joined the strike, refusing to deliver plates for mounting on new vehicles, which could potentially affect timely vehicle rollouts.
However, Tesla seems to have devised a temporary workaround. When a customer signs a purchase agreement or leasing contract with Tesla in advance, the vehicle’s ownership is transferred to the buyer. Subsequently, the owner can order plates and have them delivered via PostNord, picking them up when collecting their vehicles and affixing them, as reported by MestMotor, citing social media posts from buyers.
Why It Matters: Despite Tesla suing PostNord over the disruption in plate deliveries, a Swedish court ruled last week that the postal service is not obligated to deliver plates to Tesla.
The strike persists with no clear resolution in sight. Tesla maintains that over 90% of its employees continue to work despite the strike, asserting that its terms are as good as or better than the union’s demands. While Tesla doesn’t manufacture in Sweden, its Model Y remains among the best-selling car models in the country.
IF Metall head Marie Nilsson has expressed concerns that this strike might disrupt the traditional way of doing things in Sweden. However, she mentioned last month that the union has sufficient funds to sustain the strike for “a long, long time.”
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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