Deals

Tesla to Buy German Manufacturing Specialist on Model 3 Push

Grohmann Engineering may form base for European expansion
Deal aimed at raising Tesla auto factory’s production rate

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By Tom Lavell and Dana Hull

November 8, 2016 at 1:00 PM UTC

Updated on

November 8, 2016 at 6:31 PM UTC

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Tesla Motors Inc. agreed to buy German manufacturing-technology specialist Grohmann Engineering GmbH to add production expertise before the U.S. maker of electric cars rolls out its first mass-market model.

The equipment maker, led by founder and Chief Executive Officer Klaus Grohmann, will be developed into a new German automation division that will create about 1,000 jobs, the Palo Alto, California-based company said Tuesday in a statement. Tesla expects to complete the purchase by early 2017. Financial terms weren’t disclosed.