Tesla to acquire German engineering company

In a blog post, 8534 Tesla says it has entered into an agreement to acquire German engineering company Grohmann Engineering.

Led by founder and CEO Klaus Grohmann, Grohmann Engineering is experienced in highly automated methods of manufacturing. The transaction will serve as the initial base for Tesla Advanced Automation Germany headquarters. Tesla expects to add over 1,000 advanced engineering and skilled technician jobs in Germany over the next two years.

Several critical elements of Tesla’s automated manufacturing systems will be designed and produced in Germany and, combined with its California and Michigan engineering facilities, as well as other locations to follow, Tesla believes this will yield exponential improvements in the speed and quality of production, while substantially reducing the capital expenditures required per vehicle.

To date, Tesla has increased production rate at its US factory by 400 per cent in four years, and expects this acquisition to accelerate that growth rate. While the agreement is contingent upon clearance from regulators, including in Germany, Tesla hopes to have full approval and close the acquisition in early 2017.