Automotive & Transportation

Tesla to Accelerate Electric Car Production with Grohmann Engineering Acquisition

10 November 2016

With the goal to increase its output of electric vehicles (EVs) to a half million by 2018, Tesla Motors has bought Germany-based Grohmann Engineering -- a maker of automated methods of manufacturing.

Tesla says the key to ramping up production is high-volume factories that allow for the ability to make affordable vehicles by reducing the economies of scale. In its blog, Tesla said at high production volumes “the factory becomes more of a product than the product itself.”

The Tesla Model 3 electric vehicle will be one of the cars that will benefit from the automated manufacturing technology acquired in the Grohmann Engineering deal. Source: Tesla  The Tesla Model 3 electric vehicle will be one of the cars that will benefit from the automated manufacturing technology acquired in the Grohmann Engineering deal. Source: Tesla Under the deal, Grohmann Engineering will serve as the initial base for Tesla Advanced Automation Germany headquarters in Prüm , Germany and the car manufacturer plans to expand with other locations in the future. Tesla says it will add more than 1,000 advanced engineering and skilled technician jobs in Germany over the next two years.

The Grohmann manufacturing facility will design and produce several critical elements of Tesla’s automated manufacturing systems. Combined with other Tesla facilities in California and Michigan, manufacturing will yield exponential improvements in speed and quality of production, while at the same time reducing capital expenditures required per vehicle.

The acquisition is subject to regulatory approval and Tesla expects to close the acquisition in early 2017.

To contact the author of this article, email PBrown@globalspec.com


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Discussion – 1 comment

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Thanos
#1
2018-Nov-28 6:00 AM

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