Tesla is to buy part of bankrupt German automotive supplier Manz, the German firm said Tuesday, in a deal that rescues hundreds of jobs in southern Germany.
“We are pleased to have succesfully concluded negotiations with Tesla and preserve lots of jobs,” said a statement from the law firm acting as Manz’s administator.
“We have made it possible for colleagues to have a future career at what is probably the world’s best known electric car company,” it added.
Manz, which makes batteries and on-board electronics for cars, filed for insolvency in December 2024 in the face of slowing demand for its products.
In a statement at the time, it blamed “a drastic collapse” in the European market for battery cells and “a lack of support from the corresponding political framework” for its bankruptcy.
The German government removed its subsidies for electric vehicles at the end of 2023 and demand has failed to take off as drivers bristle at a lack of charging infrastructure and high up-front purchase costs for electric cars.
All-electric vehicles made up just 15 percent of new cars registered in Europe in January, according to the European Automobile Manufacturers’ Association.
German business newspaper Handelsblatt reported in February that Volkswagen, the world’s largest carmaker, is examining plans to make fossil-fuel cars even past 2035, the year an EU-wide ban is set to come into force.
Tesla’s purchase for an undisclosed sum would save about 300 jobs at a site in Reutlingen in south-western Germany, Manz said.
Tesla’s chief executive Elon Musk is a controversial figure in Germany where his open support for the hard-right Alternative for Germany (AfD) seems to have cost Tesla some customers.
The company sold 60 percent fewer cars in Germany in January compared to this time last year, according to official data, while car sales overall fell just 2.8 percent.
Tesla’s purchase of part of Manz is still subject to approval by Germany’s competition regulator.