Tesla Acquires Parts of Insolvent German Manufacturer Manz AG
BERLIN (Reuters) - U.S. carmaker Tesla will acquire parts of the insolvent German high-tech parts maker Manz AG, including more than 300 employees at its site in Reutlingen city in the southwest, the German company said on Tuesday.
The deal marks a wider presence by Tesla in Germany, where it runs a manufacturing site near Berlin, even after CEO Elon Musk endorsed the far-right party AfD, which mainstream parties have refused to work with due to its extreme positions.
Tesla sold almost 60% fewer cars in Germany in January than a year earlier, as the U.S. electric vehicle maker faces a test of popularity amid Musk's U.S. political involvement.
Manz's insolvency administrator and Tesla Automation GmbH, a subsidiary of the U.S. company, signed a purchase agreement on Monday, the German company said.
The parties agreed not to disclose a purchase price, and completion of the transaction is subject to merger control law.
Tesla Automation, which specializes in the construction of special-purpose machines at three German locations, plans to take over more than 300 employees, acquire movable tangible assets, and use Manz's property in Reutlingen.
Approximately 100 employees will lose their jobs and not be transferred to Tesla Automation, according to Manz.
Insolvency administrator Martin Mucha said the structured sales process for other assets was moving forward.
"We are currently holding promising talks with several interested parties," added Mucha in a statement.
(Writing by Miranda Murray; Editing by Ludwig Burger and Bernadette Baum)
