Tesla acquires automated manufacturing company to boost production

To aid in amping up production on its in-demand vehicles, Tesla has announced it’s acquiring German company Grohmann Engineering, which specializes in automated manufacturing, for an undisclosed amount. The company expects the deal to close in early 2017.

“After increasing our output target to 500,000 cars per year by 2018, we began searching for the best engineering talent in automated manufacturing systems,” wrote the company in a blog post released November 8th.

“Today, we are excited to announce that Tesla has entered into an agreement to acquire Grohmann Engineering, a world-renowned engineering company in Prüm, Germany, which will become Tesla Grohmann Automation.”

Tesla lauds Grohmann Engineering as “one of the world leaders in highly automated methods of manufacturing.” The company also notes that Grohmann will serve as its base for Tesla Advanced Automation Germany headquarters, with other locations in the country to follow.

Tesla says that over the past four years it has increased the production rate at its Fremont, California factory by 400 percent and expects this acquisition to accelerate that growth rate.

“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,” wrote the company in its post. “At very high production volumes, the factory becomes more of a product than the product itself.”

Tesla is also in the midst of acquiring SolarCity, a solar panel company in which Tesla CEO Elon Musk owns a large stake, for $2.6 billion.

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