Automotive

Tesla’s German Subsidiary Didn’t Warn Clients It Was Ending Contracts To Focus On The Model 3


Photo: Tesla

Tesla’s acquisition of German engineering group Grohmann hasn’t gone entirely smooth, evident by the dust-up between Elon Musk and the former head of Grohmann. Reports emerged last month that Grohmann was ordered to drop all clients to focus entirely on Model 3. Now, it seems those other legacy clients—namely BMW, Bosch and Daimler—weren’t made aware of that decision ahead of time. And they’re still expecting work to be completed by Grohmann.

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“Of course, we expect suppliers to fulfill their contracts and agreements,” a Daimler spokesperson told Jalopnik on Friday.

The automaker declined to comment further, but BMW told Reuters that it also believed “Grohamnn will honor its contractual obligations toward us” and said it had not been formally notified about any changes to its contract.

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