Here’s the reason why Klaus Grohmann left Tesla

With Elon Musk focused on ramping up production for the Model 3, he has now to deal with the prospects of increased wages at Tesla Grohmann Automation.

According to source familiar with the matter at hand, Klaus Grohmann was ejected from Tesla over a clash of strategy with Tesla’s Chief Executive, Elon Musk on Grohmann, a company it acquired in November 2016.

Tesla is banking on Grohmann Engineering’s automation and engineering expertise to help it ramp up production to 500,000 cars per year by 2018.

Tesla had earlier hailed Klaus Grohmann as a “world leader in highly automated manufacturing”.

Although Tesla wanted Grohmann to stay and even Grohmann himself wanted to stay, however the disagreement between Klaus and Musk became unsurmountable when it came to the question on how to treat existing clients. This is what led to his departure said a source.

While Musk wanted the focus management attention onto Tesla to the potential detriment of Grohmann Engineering’s legacy clients, which incidentally includes Tesla’s direct German competitors BMW and Daimler,  Grohmann had other plans.

When reached on the phone, Klaus Grohmann declined to comment on the circumstances of his leaving, citing confidentiality clauses.

“I definitely did not depart because I had lost interest in working,” said Grohmann without elaborating.

When requested to comment on Grohmann’s departure, A spokesman for Tesla praised him for building an “incredible company” while adding:

“Part of Mr Grohmann’s decision to work with Tesla was to prepare for his retirement and leave the company in capable hands for the future. Given the change in focus to Tesla projects, we mutually decided that it was the right time for the next generation of management to lead.”

As per two sources familiar with the matter at hand, Tesla now plans to ramp up production with the help of engineering company which has now been renamed Tesla Grohmann Automation.

With Klaus Grohmann departure however, parts of the workforce is feeling insecure about becoming so dependent on one client after the founder’s departure.

In 2016, Tesla had said, “Under the continued leadership of Mr Grohmann, several critical elements of Tesla’s automated manufacturing systems will be designed and produced in Pruem, to help make our factories the most advanced in the world.”

“Our factories are so important that we believe they will ultimately deserve an order of magnitude more attention in engineering than what they produce. At very high production volumes, the factory becomes more of a product than the product itself”.

Negotiations have now begun with some of Tesla Grohmann Automation’s clients on ways to compensate them for lack of resources devoted to their projects, said a source.

IG Metall, a German labor union has raised the prospects that Tesla formalizes multi-year job guarantees and boost salary levels to provide its assurance midst a management turmoil.

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