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ATW Merges With Tesla Saving 210 Jobs in Germany

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Yesterday, Tesla got the green light to join Neuwied auto supplier ATW as Elon Musk saves German jobs in Neuwied. This is Tesla's merger with ATW or the opposite.

Tesla is not only drawn to Berlin but also to Rhineland-Palatinate - more precisely to Neuwied. The Californian company is allowed to join the automotive supplier ATW from Neuwied. Elon Musk saves numerous jobs in the threatened location.

Tesla had already looked around Rhineland-Palatinate in 2016 and acquired a stake in the Grohmann company in Prüm in the Eifel region. Now Tesla has received the green light to participate in the auto supplier ATW. A spokesman for the Federal Cartel Office of the German Press Agency said: "It is a merger." But he did not give any further details. ATW and Tesla did not initially comment either.

Tesla is openly welcomed in Neuwied. The Neuwied city spokesman Erhard Jung expressly welcomes it "if another international company" settles in his municipality on the Rhine: "Tesla plays a leading role in electric mobility."

The Mayor of Neuwied Jan Einig (CDU) sees it similarly and pointed out that Tesla Grohmann Automation GmbH in Prüm is only around a hundred kilometers away. Cooperation is obvious.

ATW is the abbreviation for Assembly & Test Europe GmbH and belonged to the Canadian manufacturer ATS Automation Tooling Systems. However, ATS announced the closure of its location in Rhineland-Palatinate. Elon Musk, CEO of Tesla, probably saw this as another opportunity to further strengthen his company in Germany. The tech billionaire is already building a factory for electric cars in Grünheide near Berlin.

In total, the fusion saves 210 jobs at the Neuwied auto supplier. The workforce counts corporations such as BMW, Daimler and VW among its customers.

ATW is also struggling with the change in the automotive industry and has gone through a difficult transition to electromobility. The manufacturer previously produced production lines for mechanical components. ATW now specializes in the production of batteries. That goes well with Tesla. Did Elon Musk strike again at the right time?

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.