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Tesla to acquire Grohmann Engineering to boost automated manufacturing capabilities

Tesla has entered into an agreement to acquire Grohmann Engineering, a world-renowned engineering company in Prüm, Germany, which will become Tesla Grohmann Automation.

Led by founder and CEO Klaus Grohmann, Grohmann Engineering is one of the world leaders in highly automated methods of manufacturing. This transaction will bring Grohmann’s leadership, a world-class team and unique expertise in-house. Moreover, it will serve as the initial base for Tesla Advanced Automation Germany headquarters, with other locations to follow. Tesla expects to add more than 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 Prüm. Tesla expects to deliver exponential improvements in the speed and quality of production, while substantially reducing the capital expenditures required per vehicle.

Tesla has increased the production rate at its Fremont Factory by 400% in four years; it expects the acquisition to accelerate that growth rate. The current 2018 output target is 500,000 vehicles.

The agreement is contingent upon clearance from regulators; Tesla hopes to have full approval and to close the acquisition in early 2017.


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Grohmann employs 700 engineers. It may be an indication that Germany will be the next location for Tellas Giga fab 2. Musk has said the fab 2 will combine battery cell pack powertrain and vehicle assembling under one roof with raw materials coming in in one end and finished cars in the other end. The fab 2 is most definitely going to be the largest factory on the planet by a large margin.

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I expect Tesla will first and foremost chose a country for their next Giga factory where Tesla know that hiring of competent people will not be a problem. Germany is a prime candidate for that. The coming driverless BEV taxi revolution will lead to a lot of factory closures in Germany with regard to combustion engines, complex transmissions and exhaust control systems. It will not be needed at all. Germany will not want to not be part of the future auto industry so I think Tesla could get a really good deal for a site in Germany.


Tesla will have to start making cars else where because trump will take away the $7500 tax credit/BEV car. Freemount plant staff is becoming more robotics engineers instead assembly technicians. which may explain why they are not a union shop. If the few strike a new robot gets deployed.

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