Tesla Acquires German Engineering Firm Manz AG to Enhance Automation in Europe

Tesla has acquired assets of Germany’s Manz AG, integrating 300 employees and production facilities in Reutlingen to advance automation and strengthen its European presence. Read more about the deal's impact.

On February 25, 2025, Tesla announced the acquisition of part of the assets of the bankrupt German engineering company Manz AG, known for its expertise in automation, laser processing, and metrology. This deal marks another step for the American automaker in strengthening its presence in the European market and enhancing its manufacturing processes.

As part of the agreement, Tesla’s subsidiary, Tesla Automation, will employ more than 300 Manz AG workers and utilize the company's production facilities in the German city of Reutlingen. However, around 100 employees may face job losses, raising social concerns in the region. The terms of the deal have not yet been disclosed and are pending approval from Germany's Federal Cartel Office.

This is not Tesla’s first strategic acquisition in Germany. In 2016, the automaker acquired Grohmann Engineering, which later became Tesla Grohmann Automation, significantly boosting automation levels at Tesla’s factories. The new deal with Manz AG, founded in 1987 by Dieter Manz, follows a similar trajectory. Originally focused on automation, Manz evolved into a global player offering integrated production systems for various industries.

The acquisition aligns with Tesla’s long-term strategy of expanding its footprint in Europe. This is particularly relevant given the company's ambitious plans to scale up production at its Gigafactory Berlin. By 2023, Tesla aimed to increase vehicle production to 1 million units annually and battery production to 100 GWh per year. This expansion is expected to create up to 22,500 jobs, making the Berlin plant one of the largest automotive manufacturing facilities in Europe.

Industry experts believe that the deal with Manz AG could provide Tesla with additional competitive advantages by improving production efficiency and strengthening its local presence. However, questions remain about how quickly Tesla can integrate German specialists and optimize its new facilities amid increasing competition and stricter regulations in the European Union.

In conclusion, the Tesla-Manz AG deal is more than just a business expansion. It reflects how the American automaker continues to solidify its position in Europe, focusing on automation and localized production despite the challenges that come with such growth.

Source: electrek.co