In this news, we discuss the Tesla to acquire German battery assembly maker: source.
(Reuters) – Tesla Inc TSLA.O has agreed to acquire German ATW Automation, a supplier of battery module and pack assembly for the automotive industry, a source familiar with the deal said on Friday.
ATW, a subsidiary of Canadian company ATS Automation Tooling Systems Inc. ATA.TO, was on the verge of liquidation due to a drop in orders, German media reported in September.
ATS announced on September 25 that certain assets and employees of one of its Germany-based units would be sold and transferred to a third party, without disclosing the name of the company.
ATS and ATW did not immediately respond to a request for comment on Friday.
ATW, based in western Germany, has around 120 employees and has completed more than 20 battery production lines for international automakers, according to the site ATS Web.
Tesla plans to dramatically increase battery production in the coming years and, at a recent event, showcased innovations that it said would significantly reduce the cost of batteries over the next three years.
The company is currently building its third vehicle manufacturing plant near Berlin, which will also include a battery plant, and plans to begin construction of a new vehicle plant in Texas this year.
Tesla’s planned future lineup includes the Light Cybertruck and the Semi Truck, which require higher battery capacities.
Tesla said Friday it delivered a record 139,300 vehicles worldwide in the third quarter. The company aims to deliver half a million vehicles by the end of this year.
Reporting by Edward Taylor in Frankfurt; Additional reporting by Christoph Steitz in Frankfurt; Writing by Tina Bellon in New York; Edited by Dan Grebler
Original © Thomson Reuters
Originally posted 2020-10-03 07:36:10.