Like many companies, German automotive supplier and battery assembly line maker ATW (Assembly & Test Europe GmbH) was hit hard by the global COVID-19 pandemic. So much so that it was going to be forced to close and declare bankruptcy. Prior to the financial issues, the company was a successful supplier for BMW and Mercedes.
Just last month, Tesla stepped in. A report pointed out that ATW was in the process of talks with another company that could bring it back to life. However, every little information was provided about the potential deal. Now, we're aware that Tesla swooped in.
According to local news publication The European, the battery assembly line maker is being acquired by Tesla. The American electric car maker is currently on a huge battery push to plan for the future. While it plans to make its own cutting-edge batteries, it's still relying on suppliers and other battery-related companies. This is not Tesla's first battery-related acquisition.
The article in The European states (translated):
"ATW's business partners received notification on Tuesday that they had agreed on the takeover by a manufacturer of electric vehicles "in California". That this is Tesla, based in Palo Alto in California's Silicon Valley, was not confirmed in the letter, but word got around in the industry."
Since then, multiple German media outlets have confirmed that it is, in fact, Tesla, and that the deal has officially gone through.
The information assures that ATW will be able to remain in business and all 210 jobs will remain intact. This is big news as Tesla is currently building a Gigafactory in Germany to compete with the likes of BMW and Mercedes. While we don't have the specifics of the deal, reports say that Tesla should have been able to secure a good deal since, without the electric car maker, ATW would have faced failure.
Hopefully, this will be another win-win situation, helping Tesla prep for its future in Germany, keeping a battery assembly line maker afloat, and helping to proliferate electric cars into the future.