Tesla acquires Grohmann Engineering, expands automation, manufacturing expertise

The acquisition gives Tesla a base in Germany to create the automated manufacturing systems that'll be needed to churn out 500,000 vehicles in 2018.

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Tesla said it will acquire Grohmann Engineering in a move that creates a unit called Tesla Grohmann Engineering and gives it manufacturing and automation expertise to scale its factories.

The automaker announced the deal on its blog. Tesla didn't disclose the price tag for Grohmann, but the effort highlights how the company needs more automation knowhow as it aims to scale.

In its post, Tesla said that Grohmann's Prum Germany headquarters will become the hub for the company's automation planning. Tesla added that it will add more than 1,000 engineering and technician jobs in Germany over the next two years.

The unit will be led by Grohmann Engineering CEO Klaus Grohmann in what could be described as an acqui-hire deal.

Tesla has increased its output target to 500,000 cars per year by 2018, but it needs big leaps to hit that target. Tesla said Grohmann's expertise will come in handy as it creates its automated manufacturing systems.

Depending on regulatory approvals, Tesla said the deal should close in early 2017.

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