Electric Vehicles: Big News From Germany

Tesla Preparing for Gigafactory 2 in Germany

Image credit: Steve Jurvetson via Flickr
Image credit: Steve Jurvetson via Flickr

In its quest to accelerate vehicle production, Tesla has announced plans to acquire German engineering firm Grohmann Engineering. Grohmann specializes in advanced automated manufacturing techniques.

As it says in its announcement, Tesla is looking to change the way vehicle production is approached:

“Accelerating a sustainable energy future is only possible with high-volume factories. They allow us to manufacture high-quality products with economies of scale, making them more affordable and accessible to the world. As the machine that builds the machine, our factories are so important that we believe they will ultimately deserve an order of magnitude more attention in engineering than what they produce. At very high production volumes, the factory becomes more of a product than the product itself.”

Tesla is looking to increase vehicle production from less than 100,000 units in 2015 to one million units per year in 2020. This acquisition is the first step. Elon Musk confirmed the company is looking at locations in Germany to build “Gigafactory 2.” This facility would be capable of producing batteries and complete cars.

Volkswagen Goes All-In on EVs

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Image credit Spanish Coches via Flickr

Days after Tesla announced intentions to build Gigafactory 2, Volkswagen declared it was building a new battery factory in Germany for advanced electric vehicles.

The pilot plant is pact of Volkswagen’s “pact for the future.” The plan is predicated around development and production of electric vehicles. The pact represents a major strategic shift for the Volkswagen.

“To bring Volkswagen to the forefront of the industry in the future-oriented areas of e-mobility and digitilization, the company will be making a massive investment in new technologies”, the company said.

Herbert Diess, Chairman of the VW brand board of management added, “We will be transforming the entire brand and making it fit for the fundamental transformation of our industry. At Volkswagen, we are taking our future into our hands.”