Tesla to acquire Grohmann Engineering, launch German HQ

Tesla Motors has announced its agreement to acquire German company Grohmann Engineering in an effort to further automate its factories and increase production.

Led by founder and CEO Flaus Grohmann, Grohmann Engineering is a leader in highly automated forms of manufacturing. The company develops, supplies and services production systems.

Located in Prüm, Germany, it will serve as the base for Tesla Advanced Automation’s German headquarters, with more locations to follow.

“We expect to add over 1000 advanced engineering and skilled technician jobs in Germany over the next two years,” said Tesla in a blog post.

According to the company, “several critical elements” of its manufacturing systems will be designed and produced in Prüm. Tesla believes that combined with its California and Michigan engineering facilities (as well as its future locations), the new German headquarters will lead to significant improvements in the speed and quality of production, while reducing capital expenditure per vehicle.

The agreement is subject to clearance from regulators, however Tesla hopes to close the acquisition in early 2017.