Tesla to buy Michigan parts supplier
Tesla is setting up shop in the Big Three\'s backyard.
Tesla Motors is encroaching on the territory of the Big Three with the purchase of a Grand Rapids-based part supplier.
Tesla has reportedly reached a deal with Grand Rapids-based Riviera Tool to acquire the company's stamping business. Riviera currently makes stamping parts for Tesla's plant in Fremont, California.
A source familiar with the situation told the Detroit Free Press that Tesla will change the name of the business to Tesla Tool & Die. Tesla is expected to retain all 100 of Riviera's currently employees.
Tesla will continue to source parts from other stamping companies in the supply industry.
The purchase of Riviera Tool marks Tesla's first supplier acquisition, but it won't likely be the company's last.
"Tesla's aggressive volume goal for 2015 has the automaker working overtime to secure sufficient production capacity," said Karl Brauer, senior analyst at Kelley Blue Book. "Purchasing a Michigan-based tool and die company illustrates Tesla's need for a capable and dedicated manufacturing partner. It could represent the first of many such acquisitions we'll see in the months ahead."