Tesla Ousts German Executive Klaus Grohmann

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Tesla’s German automation expert Klaus Grohmann was ousted after a disagreement with the company’s CEO

Klaus Grohmann, Tesla’s executive of the German automation division, left the company after disagreeing with the company’s CEO, Elon Musk. The quarrel between the two concerned possible methods on how to deal with the German company’s older clients, and it culminated with the ousting of Grohmann.

Musk and Klaus Grohmann disagreed on how to handle the latter’s older clients

Klaus Grohmann was the founder of Grohmann Engineering, a company based in Germany which dealt with automatic manufacturing. Tesla purchased this company near the end of last year and, so far, the two executives did not face any misunderstandings.

Reuters reports that Musk and Grohmann had different opinions on the handling of older clients. Previously, Grohmann Engineering collaborated with Daimler, the company which also owns Mercedes-Benz. It looks like Musk wanted Grohmann and his company to focus only on Tesla, and no longer build vehicles for their competitors.

Only six months passed since Grohmann Engineering became part of Tesla. At the time of the purchase, Klaus Grohmann agreed to be the head of a new division in the newly formed institution. More precisely, he was going to lead the Tesla Advanced Automation division in Germany.

Tesla wanted to aggressively increase their production

This was part of Tesla’s attempt to rapidly increase the number of employees they had in Germany. Besides those 700 people who were Grohmann Engineering employees, Tesla wanted to open new positions for engineers and technicians. Thus, they planned to acquire 1,000 new employees over the next two years.

This adds up to the intense production started in the factory in Fremont, California. All these efforts mark Tesla’s goal to manufacture 500,000 new electrical vehicles by the end of 2018. However, too much dedication to this cause made them lose one of the executives.

Before Tesla purchased his company, Grohmann collaborated with many other automobile manufacturers, as well as other companies. When he agreed to sell his company to Elon Musk, the agreement they signed stipulated that Grohmann would still be able to continue working with other companies. However, they changed their directives, and thus Grohmann had to be ousted.

Immediately after this incident, Elon Musk’s company did not release any statement. Afterwards, they came with an official declaration, saying that they have plans to further expand their production in Germany. They said that their activity would probably not be affected by the departure of Grohmann from the company.
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