Grohmann

In 1983, in the small German town of Prüm, Klaus Grohmann established Grohmann Engineering. The company wasn't building cars, but rather the highly specialized, automated systems that build parts for them. They became a quiet leader in the world of industrial automation, developing production lines for everything from airbag sensors to lithium-ion battery modules for major German automakers. The company’s trajectory changed dramatically in November 2016 when Tesla announced its intention to acquire the firm. Tesla, facing the monumental task of scaling production for its mass-market Model 3, needed world-class automation expertise to build "the machine that builds the machine." Grohmann Engineering was their choice to make that vision a reality. The deal was completed in January 2017 for about $135 million, and the company was renamed Tesla Grohmann Automation. This marked a pivotal moment, as the German engineering firm became a critical internal asset for Tesla's global manufacturing ambitions. Following the acquisition, Tesla focused the company's entire capacity on its own production needs, ending relationships with previous clients to accelerate its own factory improvements. While founder Klaus Grohmann departed after the transition, the company he built became a cornerstone of Tesla's plan to revolutionize high-volume vehicle manufacturing.