Tesla Motors will be buying a German engineering firm to improve its automated manufacturing systems.

The automaker will work with Grohmann Engineering, based in Pruem, Germany, to ramp up production and reach its target of 500,000 vehicles manufactured by 2018. Several elements of Tesla’s automated manufacturing systems will be designed and produced in Pruem.

Financial terms were not disclosed, but the acquisition is expected to add more than 1,000 engineering and skilled technician positions in Germany over the next two years, Tesla confirmed in its blog.

The firm will be renamed Tesla Grohmann Automation after the deal is closed. It will serve as the initial base for Tesla Advanced Automation Germany headquarters, with other locations to follow.

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Tesla has been speeding up its factory more recently in preparation for mass production of the Model 3. The automakers expects the acquisition will support improvements in speed and quality of production, while at the same time cutting costs.

The deal is expected to close next year once approved. Its will need to gain clearance from regulators, including agencies in Germany.

Automotive News