Tesla Motors Acquires Michigan Auto Supplier, Will Expand Cars Manufactured In 2015 [Video]
It’s no secret that Telsa Motors is under pressure to amp up production of its Model S cars. To meet the high demand for their luxury electric cars, the company announced it has acquired Grand Rapids-based auto-supplier, Riviera Tool, placing a stronghold in the original motor capital of the world.
The acquisition is a first for the electric car manufacturer, and is meant to alleviate the supply chain problems which have plagued the company, an issue near and dear to CEO Elon Musk’s heart since Tesla Motors isn’t expected to turn a profit until 2020. A representative from Riviera Tool declined to comment, and referred press inquiries to Tesla Motors, according to the Detroit Free Press.
Tesla is also expected to begin production on their Model X luxury cars in the third quarter of 2015, and the acquisition of the parts manufacturer will let Tesla meet demand for that model as well. The Model X will have the functionality of sport utility vehicles, but with the performance of the luxury Model S cars. It’s Falcon Wing Doors fold up, allowing easy access to the third-row seat, and it easily seats seven adults.
This isn’t a random acquisition; Riviera and Tesla have an established history. Riviera designs, manufactures, and sells metal stamping die systems that are then shipped to Tesla headquarters in Freemont, CA. It’s expected Tesla will retain all 100 of Riviera’s employees, and rename the company Tesla Tool and Die.
“We just finalized the deal tonight,” a Tesla spokesperson said, according to 24 Hour News 8. “We’re really excited.”
“I, for once, am not worried about my trade’s future,” one Riviera employee said. “It’s so refreshing to finally be excited about our future… I’m so happy Tesla recognized West Michigan talent.”
Several months ago, Michigan Governor Rick Snyder signed a bill into effect that prevents Tesla Motors from selling its cars directly to consumers in that state. The closest Tesla dealership is in Chicago, although, as the Inquisitr previously reported, Tesla Motors sells it’s pre-owned cars online, as well. However, now that Tesla has a physical presence in the state, CEO Elon Musk hasn’t ruled out the possibility of establishing a production plant in Michigan.
“It’s not out of the question. Maybe Michigan shouldn’t stop us from selling cars here. That would be a nice gesture,” Musk told an audience at Automotive News World Congress last January.
