German automotive supplier Manz has declared itself insolvent. Now Tesla is stepping in and buying the entire business.
German automotive subcontractor Manz has run out of money. Now Tesla is buying all the equipment that Manz used to produce equipment.
Reuters writes.
The deal means that Tesla will also take over 300 employees who have worked for Manz until now. Another 100 former Manz employees will not be transferred to Tesla, but will be offered jobs elsewhere, according to the agreement between Manz's trustee and Tesla.
It is Tesla's subsidiary Tesla Automation, which works with automation of the car factory's production facilities, that will use the equipment from Manz.
Therefore, it is also in Tesla Automation that the 300 new people are being offered new employment. It was the district court in Stuttgart that approved the deal on Monday.
Manz himself declared himself insolvent in December 2024, and ever since then, German production for, among other things, the German automotive industry – including Tesla's factory on the outskirts of Berlin – has been at a standstill.
– We are pleased to have successfully concluded the negotiations with Tesla, to have saved many jobs, and thus to have made it possible for the employees to have a professional future in what is probably the best-known car group in the field of electric mobility, says Manz's curator Martin Mucha in a comment.
Manz is far from the only subcontractor in the automotive industry that is struggling. Several even larger players are having to implement gigantic cost-cutting plans to save their business.
German ZF Friedrichshafen AG, which makes its living by building gearboxes, has previously said that it will have to say goodbye to 14,000 employees in order to save up to 46 billion kroner over the next few years.
And the car manufacturers themselves are having to tighten their belts. Audi is closing its factory in Belgium. This will cost 3,000 jobs, and Volkswagen will have to say goodbye to even more because, as part of a larger savings plan, it has been decided to close several factories in Germany.
