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Tesla Model 3 In Danger Of Missing Deadline Due To Possible German Factory Strike, Chinese EV Makers Threatening To Take Them On

Travelers Today       By    Yosarrian Nino

Updated: Apr 20, 2017 04:40 AM EDT

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tesla, Tesla model 3, Tesla Model 3 production, Tesla Grohmann Automation
Tesla Model 3 In Danger Of Missing Deadline Due To Possible German Factory Strike, Chinese EV Makers Threatening To Take Them On
The Tesla Model 3 is in danger of missing its July deadline as a possible strike in Tesla Grohmann Automation looms. The company is also facing threat from Chinese EV makers, as they look to take on the Model 3 head on with their own electric vehicles.
(Photo: Justin Sullivan/Getty Images)

The Tesla Model 3 electric vehicle (EV) is in danger of missing its deadline due to the threat of a possible strike in a factory in Germany. But that's not the only threat Tesla is facing as Chinese makers are looking to take on the company with their own EVs.

According to a report from USA Today, the German labor union IG Metall has threatened to organize a strike at the Tesla Grohmann Automation in Prüm. The labor union is known to hold a powerful grip over big manufacturers such as General Motors and Volkswagen.

The reason for the strike is that some of the factory workers are not happy with the wages they are receiving with Tesla. The factory was previously known as the Grohmann Engineering, an industrial robotics manufacturer before Tesla acquired it in November.

The company said that they are directly working with the employees of Tesla Grohmann to come out with a solution. But they are also prepared in case the union takes action. Germany has strict labor laws that protect its workers and unions are given significant authority.

If the strike pushes through, it will affect the production of the Tesla Model 3, which has a deadline of July for the EVs. But it seems like the factory strike is not the only threat that Tesla is facing as Reuters reports that Chinese EV makers such as WM Motor, Future Mobility, and Singulato Motors are looking to take on the Model 3 in China.

The report said that the three automakers acknowledged that the Tesla Model 3 is the car to beat when it comes to electric vehicles. The price of the vehicle is expected to be at $35,000 in the U.S. and Chinese buyers are expected to add 25 percent to the price for import tariffs.

The strategy of the three EV makers is to make their cars cheaper than the Model 3 but have more premium on it. They plan to do this by producing the cars locally to be able to offer a cheaper price.

The CEO and co-founder of Singulato said that they're targeting a price between 200,000 yuan and 300,000 yuan (roughly $29,000 to $43,500). Check out the video below to learn more about the Tesla Model 3.

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