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Tesla acquires Grohmann Engineering to maximize vehicle production

By Shawn Knight
Nov 8, 2016
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  1. Tesla on Tuesday said it has entered into an agreement to purchase Grohmann Engineering, an automated manufacturing systems company based out of Prüm, Germany. Financial terms of the deal, which CEO Elon Musk described as the first significant acquisition in Tesla’s history, were not disclosed.

    Grohmann Engineering isn’t just another production facility for Tesla to use to directly manufacture its vehicles. Instead, the firm will be responsible for designing and producing critical elements of Tesla’s automated manufacturing systems that’ll lead to exponential improvements in the speed and quality of production while simultaneously lowering the production cost of each vehicle.

    In a call with journalists Tuesday morning, Musk said that because automation is such a vital part of the future of Tesla, the phrase that he’s used before is that it’s about building the machine that’s building the machine. That aspect actually becomes more important than the machine itself as the volume increases, he says, adding that it’s important for Tesla to bring in world-class engineering talent.

    Tesla highlighted in a blog post that they’ve increased the production rate at their Fremont factory by 400 percent in four years. They’ve also increased their target output to 500,000 vehicles by 2018 with a goal of doubling that to one million by 2020. The acquisition is expected to generate more than 1,000 jobs in Germany over the next two years on top of the 700 employees currently working for Grohmann Engineering.

    Tesla said it aims to close on the deal in early 2017 pending customary regulatory approval.

    Image courtesy Brian Vance, Motor Trend

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  2. Theinsanegamer

    Theinsanegamer TS Guru Posts: 372   +323

    Lets hope this results in much lower prices as well. The big issue is that the teslas are expensive. Even the model 3 is without tax breaks.
     
  3. Uncle Al

    Uncle Al TS Evangelist Posts: 1,663   +775

    Actually I'll give the old boy credit for making a sound business move. Improving production will meet obligations and eventually lower production costs which SHOULD be passed along to the consumer. I am a bit surprised to hear of his other project to build another one of those Super Battery Production facilities over in Europe, even before he has the one here up and running efficiently ..... that is either pure guts, or pure stupidity. Let's hope they aren't using any "Solid Oxygen" in them!!!! LOL
     
  4. mccartercar

    mccartercar TS Booster Posts: 134   +25

    His UBI statement is justified.
     
  5. mbrowne5061

    mbrowne5061 TS Evangelist Posts: 334   +132

    I honestly think he is just hedging his bets with the battery production - bets that China is about to become unfriendly business territory for US companies. Had the election gone differently, we probably never would have heard word of the European super-factory again. Instead, I think he is just going to take the prep work already done for the China one, and cut and paste it into the European on.
     

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