Tesla (TSLA, Financials) will acquire parts of German high-tech manufacturer Manz AG, including more than 300 employees at its Reutlingen facility, as part of a deal signed Monday.
Monday's signing of the deal was between Manz's insolvency administrator and Tesla Automation GmbH, a division of Tesla.
The purchase's financial details were not revealed, and under Germany's merger control legislation the transaction is still subject to regulatory clearance. After acquiring Manz's moveable physical assets, Tesla Automation will keep utilizing the Reutlingen property owned by the firm. But around 100 Manz workers won't be switching to Tesla, which would cause job losses.
With its purchase, Tesla's foothold in Germany—where it already runs a sizable automobile production facility close to Berlin— increases. The action comes as Tesla deals with a difficult market in the nation, with sales down over 60% in January against last year.
After financial problems, Manz AG—which specializes in high-tech manufacturing and automation—filed for insolvency Martin Mucha, the insolvency administrator for Tesla, said that while the sales process is still under progress even if Tesla has acquired some of Manz's assets. Talks on the company's remaining assets among potential possible bidders keep on.
With this purchase, Tesla shows a purposeful drive to improve manufacturing efficiency and enhance its European supply network.
