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U.S. Markets

German auto supplier SHW plunges on loss of electric car order

BERLIN (Reuters) - German automotive supplier SHW Automotive GmbH said a maker of electric cars had canceled a 100 million euro ($107 million) order, sending its shares down as much as 9.5 percent to a four-month low on Tuesday.

SHW, which assembles pumps and engine components as well as brake discs, said the customer - which it didn’t name - had canceled an order awarded last September, and asked SHW to stop preparations for production, originally due to start in the first half of this year.

SHW said the customer felt technical specifications for axle-drive pumps failed to meet its requirements.

However, SHW said it did not accept this reason and reserved the right to seek damages.

Shares in Aalen, Germany-based SHW were down 7.5 percent to 30.12 euros at 1321 GMT, having traded as low as 29.49 euros.

Spokespeople in Germany for Renault-Nissan and Toyota - both major manufacturers of electric vehicles - didn’t return calls seeking comment, while a spokeswoman for U.S. luxury electric automaker Tesla had no immediate comment.

Reporting by Andreas Cremer; Editing by Mark Potter

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