Tesla Moves Production Further In-House With Acquisition Of Automated Assembly Firm Photo:

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Kez Casey | Nov, 09 2016 | 0 Comments

In most instances automotive production is balanced between what a manufacturer can manage under its own steam, and a steady supply of systems and components from outside suppliers.

Tesla looks at things a little differently. Though the American EV manufacturer does rely on outside suppliers in some instances, major components usually supplied from outside specialists, like batteries are items that Tesla wants to have full control over.

With this in mind the announcement from Tesla this week that it has acquired German battery and electronics manufacturing specialist Grohmann Engineering is somewhat unsurprising.

A Tesla Model S at the company's Freemont, California factory
A Tesla Model S at the company's Freemont, California factory

With Tesla setting its sights on producing 500,000 vehicles per year, the Grohmann Engineering acquisition will allow the American firm to design and engineer its own manufacturing systems, which Tesla describes as the most advanced in the world.

“As the machine that builds the machine, our factories are so important that we believe they will ultimately deserve an order of magnitude more attention in engineering than what they produce. At very high production volumes, the factory becomes more of a product than the product itself.” Tesla said in a post on its blog.

Currently the deal is awaiting approval from European regulatory bodies, but it is expected to be finalised in early 2017. From that point on the company will be renamed Tesla Grohmann Automation.

Current Grohmann Engineering founder and CEO, Klaus Grohmann will maintain a leadership position within the entity, however Tesla has yet to disclose his role, or the financial deals of the transaction.

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