Tesla buys Grohmann Engineering to speed up electric car manufacturing

While Apple is still deciding whether or not to design its own electric car, Tesla has announced its acquisition of Grohmann Engineering, which could help dramatically increase output of the Model S, X, and 3.

The takeover — expected to close by early 2017 — will rechristen Grohmann as Tesla's Advanced Automation facility in Germany, dedicated to further automating and streamlining manufacturing, TechCrunch reported on Tuesday. Tesla said that it expects "exponential improvements" in both the speed and quality of its output, lowering production costs in the process.

Despite the focus on automation, the German facility is expected to add as many as 1,000 engineering and technician jobs in the next two years — more than doubling Grohmann's current 700-strong workforce.

"We thought it was important that Tesla become, in part, a German company," said Tesla CEO Elon Musk. "That's what this was all about."

The two firms have been in a partnership for several months, which Tesla CTO J.B. Straubel said led to the belief they could do more as a combined entity.

Tesla has declared ambitions of becoming a mainstream car manufacturer, mainly via the Model 3, which will cost only $35,000 before any government incentives. Preorders have been so intense, though, that the company has been scrambling to ramp up production as fast as possible. Part of this will hinge on its battery-oriented Gigafactory in Nevada, which is already operational but won't hit full capacity until 2018.

Apple's first electric car project is in limbo. While the company is still believed to be developing self-driving technology, it may not decide until late next year whether it wants to resume creating its own car or partner with an established automaker.

15 Comments

SpamSandwich 32917 comments · 19 Years

About 8 years ago

They must've gotten some sweet financial incentives to do this.

cali 3494 comments · 10 Years

Ugh I want to see an Apple Car already! These cars don't look futuristic at all.

jmgregory1 474 comments · 15 Years

Good for Tesla. They're making the right moves and have the big picture view of their future, which it seems most other car makers just do not have. Forget about an Apple car. That's one product I have zero interest in, and I've been a big Apple follower and user since the early '80's.

jmgregory1 said:

Good for Tesla. They're making the right moves and have the big picture view of their future, which it seems most other car makers just do not have. Forget about an Apple car. That's one product I have zero interest in, and I've been a big Apple follower and user since the early '80's.

You've never seen the Apple Car, no one has. So how can you have interest or non-interested in it?

this is the same song we hear before every Apple product.

All I know is these electric cars look really old school. I could guarantee you Apple would bring something fresh to the market that we'd all want.

ireland 17435 comments · 18 Years

jmgregory1 said:

Good for Tesla. They're making the right moves and have the big picture view of their future, which it seems most other car makers just do not have. Forget about an Apple car. That's one product I have zero interest in, and I've been a big Apple follower and user since the early '80's.

Adapt or die.