Tesla Motors to buy Grohmann Engineering for undisclosed sum

Electric car maker Tesla Motors has entered into an agreement to buy Germany’s Grohmann Engineering for an undisclosed amount.

Tesla announced the news on its blog on Tuesday, saying that after upping its output target to 500,000 cars a year by 2018, it began searching for “the best engineering talent in automated manufacturing systems”.

The company said: “This transaction will bring Mr Grohmann’s leadership, a world-class team and unique expertise in-house. Moreover, it will serve as the initial base for Tesla Advanced Automation Germany headquarters, with other locations to follow. We expect to add over 1,000 advanced engineering and skilled technician jobs in Germany over the next two years.”

Grohmann Engineering will become Tesla Grohmann Automation and will continue to be led by founder and chief executive officer Klaus Grohmann. Tesla said several critical elements of its automated manufacturing systems will be designed and produced in Prüm, where Grohmann is based, to help make its factories the most advanced in the world.

“Combined with our California and Michigan engineering facilities, as well as other locations to follow, we believe the result will yield exponential improvements in the speed and quality of production, while substantially reducing the capital expenditures required per vehicle.”