Tesla works to resolve legacy clients related issues with Grohmann Engineering

Tesla’s needs Grohmann Engineering’s expertise to ramp up its production to 500,000 cars by 2018.

Tesla Inc has stated it is determined to resolve the outstanding disputes with the legacy customers of its Grohmann engineering unit.

Issues had flared up after Tesla had a difference of opinion on management priorities with Grohmann engineering’s legacy clients.

Before being acquired by Tesla in November 2016, Grohmann specialized in helping its clients build highly automated and efficient factories. Its clientele included Tesla’s rivals such as Volkswagen AG, BMW and Daimler AG.

With Tesla focusing on the release of the Model 3, Elon Musk, Tesla’s Chief Executive, had ordered that all of Grohmann engineering’s resources be devoted towards the Model 3.

Following a difference of opinion, Klaus Grohmann, the company’s co-founder exited the company.

“We have been in contact with every client for weeks on this issue and are on the way to finding individual solutions with each of them,” said Tesla in a statement.

Tesla is banking on Grohmann Engineering’s automation and engineering expertise to help it make its factories ultra efficient and ramp up production to 500,000 cars per year by 2018.

“We believe that Grohmann will honor its contractual obligations toward us in future,” said BMW in a statement while adding that it had not been formally notified of any changes to its contractual arrangements with Grohmann Engineering, now owned by Tesla.

Daimler and Volkswagen declined to comment.

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