Tesla Grohmann Automation

So who is Grohmann Automation?

Tesla’s bought the German Grohmann Engineering for $150 million in cash.

They will rename to company Tesla Grohmann Automation.

German firm that specializes in automated manufacturing: is a medium-sized company that makes automated production lines in Pruem, a small town in the state of Rheinland-Palatinate, Germany, near the country of Belgium.

Tesla acquired the firm, then called Grohmann Engineering, according to Tesla CEO Elon Musk , “to manufacture high-quality products with economies of scale, making them more affordable and accessible to the world. As the machine that builds the machine”

In order for Tesla to be successful, that is, by their standards, Tesla needs to build 500,000 cars per year by 2018.

Considered by the industry, Grohmann is one of the world leaders in highly automated methods of manufacturing.

Grohmann, according to Tesla, they needed exclusivity, so to be exclusive they had to  buy the company outright . The firm had contracts with major German automakers, including BMW, Daimler and Volkswagen.

Under the original agreement, the leadership of Mr. Klaus Grohmann, has  already changed. Mr Grohmann will not be in involved.

Tesla has big plans to add  1,000 engineers and technician jobs in Germany to the already  existing 700 employees.

Tesla plans to ramp up electrical vehicle production at its Fremont, California factory for the  Model 3  is expected to begin production in July.

Elon Musk, stated that “this is such a vital part of the future of Tesla, the phrase I’ve used before is that it’s about building the machine that’s building the machine,”

“That actually becomes more important than the machine itself as the volume increases.  We think it’s important to bring in world-class engineering talent and our first choice was Grohmann.”

“To date, we have increased the production rate at our Fremont Factory by 400% in four years,  and we expect this acquisition to accelerate that growth rate. We are excited to have the Grohmann team join us in our goal of becoming the best manufacturer in the world “

Many believe that  no better way to make a luxury car, especially, when using German technology.

Current suppliers must also be on board with timely deliveries. Such as Bosch, which makes steering systems; Infineon provides chips and sensors; Peiker, owned by Valeo, which makes mobile connectivity devices; Recaro (a German subsidiary of Adient located in Micigan) produces seats; S1nn (a German company owned by  Harman International Industries) makes sound systems; Thyssen Krupp supplies steering columns and shock absorbers. Just to name a few. However many of these are subject to change.

You also have to have paints  coatings, some plastics and car-painting technology that are supplied by Coroplast and BASF. KUKA  and Manz (used in battery production) makes robots engaged in Tesla assembly; Schuler builds large presses to stamp out body frame parts.

“Given the change in focus to Tesla projects, we mutually decided it was time for the next generation of management to lead,” Tesla said, explaining the change.

After Mr. Klaus Grohmann, left .

The workers  Grohmann weren’t happy. either.

They threatened to unionize and explore a strike, but Tesla raised their wages and offered them stock for addition compensation.

More innovation to come.