A subsidiary of Canadian ATS Automation Tooling Systems Inc., ATW took an unexpected turn when it found out about its closure due to the pandemic last month. The company happened to be in luck when they started having negotiations with a company that could lead to a secure future of ATW and its 210 highly skilled employees.
ATS had announced on September 25 that it would be particular assets and employees at one of its German subsidiaries would be sold off and acquired by a third-party, however, the name of the buyer was not revealed.
It was only until recently that the identity of the company was discovered that would be saving the German battery assembly maker from going bankrupt, and it was none other than the American electric vehicles company, Tesla.
Tesla is Going to take Over ATW Automation
The acquisition by Tesla comes as a part of building up its own battery production in the years to come. The company also presented the idea at a recent event that the cost of battery packs would be significantly reduced in the next three years.
As we have seen countless innovations by Tesla in recent years, the company is once again set on establishing a third vehicle manufacturing unit near Berlin, which will also have a battery plant. Moreover, it also plans to build up another vehicle factory in the state of Texas this year.
The innovative vehicle manufacturer aims to launch the light-duty Cybertruck and the Semi Truck in the future, both of which require higher battery capacities. ATW’s business used to be highly profitable as it produced batteries for renowned cars including the BMW and Mercedes-Benz.
As Tesla plans to expand, it requires modern batteries as well as skilled workers, both of which it has acquired through ATW. Since ATW was already on the way to bankruptcy when Tesla acquired it, there are also speculations that suggest that Tesla may have signed off a very good deal in the acquisition.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
