Tesla adds German firm Grohmann to European operations

Tesla is expanding operations in Europe with the purchase of German engineering firm Grohmann to form a new automated manufacturing research centre. Grohmann Engineering, which will be renamed Tesla Grohmann Automation, specialises in automated assembly systems serving the automotive, telecommunications, consumer electronics and biotechnology industries. The deal, whose financial terms were not disclosed, is expected to add more than 1,000 engineering and skilled technician jobs in Germany over the next two years, subject to purchase approval by Germany, Tesla said in a blogpost. Grohmann employs around 700 people and had revenues of €123m (£109m) in 2015. The German engineering firm is expected to help Tesla ramp up production volume and quality, while cutting costs, as it attempts to produce 500,000 of its electric vehicles a year by 2018.