Tesla Acquires Parts of Insolvent Manz AG
Tesla is strengthening its presence in Germany by acquiring assets from Manz AG, a struggling high-tech parts supplier that recently filed for insolvency. The deal, announced on Tuesday, includes more than 300 employees from Manz’s Reutlingen site, as well as movable tangible assets and access to the company’s property. Tesla Automation GmbH, a subsidiary of the U.S. carmaker, finalized the purchase agreement with Manz’s insolvency administrator, Martin Mucha, on February 24.
Manz had been struggling for months after a downturn in the market and a lack of orders from the electric mobility sector. The company filed for insolvency in December 2024 when lenders refused to provide further funding. Although a full buyer for Manz AG could not be found, Tesla’s purchase ensures that part of the company and some jobs will remain.
Despite this acquisition, not all Manz employees will be making the transition. Out of roughly 400 workers at the Reutlingen site, about 100 will lose their jobs. Some will have the option to join a transfer company, but the fate of Manz’s 800 employees outside Germany remains uncertain.
The financial details of the deal have not been disclosed. However, Mucha expressed satisfaction with the agreement, stating that negotiations with Tesla had been successful in saving many jobs. He also noted that other parts of Manz are still in the process of being sold off, with ongoing discussions involving multiple interested parties.
For Tesla, this move comes at a time when the company is facing declining sales in Germany. The U.S. electric vehicle maker saw a nearly 60% drop in sales in the country in January compared to the previous year. Some analysts have pointed to CEO Elon Musk’s political statements as a factor affecting Tesla’s reputation in Europe.
Adding automation capacity in Germany could help Tesla counter its sales slump in the region. Tesla Automation already operates at three locations in the country, and the acquisition of Manz’s Reutlingen site will expand its footprint to four. The company specializes in the construction of special-purpose machines, which are crucial for Tesla’s production efficiency.
Tesla’s history with automation in Germany dates back to 2016, when it acquired Grohmann Engineering, a mechanical engineering firm focused on automating production facilities. Since then, Tesla Automation has worked exclusively for the U.S. automaker, shifting away from external contracts.
While Tesla’s expansion in Germany continues, the long-term impact of this acquisition remains to be seen. With Manz being gradually liquidated, former shareholders of the listed company are expected to receive little to no compensation. Meanwhile, Tesla Automation’s newly acquired assets and workforce could play a key role in its European strategy.
For now, the deal provides a partial lifeline for former Manz employees, while Tesla gains a stronger foothold in Germany’s high-tech manufacturing sector.
