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>> The mysterious departure of a small German company's CEO could yet prove a big bump in the road for Tesla. Recently purchased by the electric car maker, Grohmann Engineering is an obscure business in the tiny town of Prum, population 5,000. It specializes in helping larger companies design automated factories, including Mercedes and BMW, critical for Tesla which plans a massive ramp up in output.
But sources told Reuters Ed Taylor that Grohmann's founder, Klaus Grohmann, objected to a demand that he abandon its other clients and go all in with the American firm. It seems to have been that there was an understanding
at he would be allowed to continue to service his existing clients alongside Tesla when the company was taken over.
And that seems to have changed, just simply because the business priorities for Tesla, perhaps, have changed and as a result there was a clash.>> The Grohmann Company is considered a key asset in a huge effort to increase Tesla's production from around 80,000 vehicles last year to half a million in 2018.
Some of the German firm's legacy clients now negotiating for the lost resources. Mr. Grohmann declined to comment on the specifics of his departure, citing a confidentiality contract and wouldn't go on camera. But he did tell us by phone, I did not depart because I had lost interest in working.
And it's not the only issue in prune for Tesla and its heavy hitting chief, Elon Musk. They are facing push back from the local labor union.>> Mr Klaus Grohmann was a hands on presence in the company and could be reached every day and now it's being run by somebody who spends most of his time, quite frankly, probably in business jets and is in California.
That's led to some of the workforce demanding extra guarantees in terms of their job security.>> Tesla's pledge to hike pay and create 1,000 new jobs at the German company, more than double its current workforce, renamed to Tesla Grohmann Automation. But ending the corporate culture clash could prove a whole lot tougher.