#GrohmannEngineering

Tesla Motors has said it is making efforts to resolve outstanding issues with Grohmann Engineering’s legacy clients, including Daimler, BMW, Bosch, Intel, and Volkswagen Group. After the Tesla takeover last November, CEO Elon Musk indicated to Grohmann’s management team that the brunt of its efforts should be diverted away from former customers in order to focus primarily on production facilities related to the Model 3.

The move placed Musk at odds with company founder Klaus Grohmann, eventually resulting in his abrupt departure, and was a major source of tension among the German workforce — which, backed by IG Metall, has threatened to strike. Negotiations have already yielded improved worker pay and hiring promises, but Tesla now appears to be tackling the issue of how to handle the numerous clients who have been hung out to dry.

Tesla Motors has smooth-talked its Californian workforce out of unionizing for some time, but the labor war is now being waged on two fronts.

Since acquiring German supplier Grohmann Engineering, that company’s workforce has accused Tesla of unfair wages and dissolving established business ties to focus solely on the upcoming Model 3. Elon Musk was forced to personally reassure Grohmann, now called Tesla Advanced Automation Germany, to keep it from syncing up with autoworkers’ union IG Metall and going on strike.

Since the supplier is an essential part of the Model 3’s timely production, Tesla has changed tactics and is now throwing more money at Germany and promising extra jobs in the hope of avoiding work stoppages. It also apparently removed the company’s CEO and founder, Klaus Grohmann, after repeated clashes with Musk over the firm’s future.