Tesla will acquire portions of the struggling German high-tech parts maker Manz AG, including more than 300 employees at its Reutlingen site in southwest Germany, the company said on Tuesday.
The deal marks an expansion of Tesla’s operations in Germany, where it already runs a major manufacturing plant near Berlin.
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The acquisition comes as the U.S. electric vehicle maker faces declining sales in the country, with a nearly 60% drop in January compared to the previous year.
Tesla Automation GmbH, a subsidiary specializing in special-purpose machine construction across three German locations, signed a purchase agreement with Manz’s insolvency administrator on Monday.
The transaction, which includes movable tangible assets and the use of Manz’s property in Reutlingen, remains subject to merger control approval.
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About 100 Manz employees will not be transferred to Tesla Automation, according to the German company. Meanwhile, efforts to sell additional Manz assets continue. “We are currently holding promising talks with several interested parties,” said insolvency administrator Martin Mucha.
