An American electric automobile manufacturer, Tesla Motors, has decided to procure a high-tech battery sensor system from the Chinese automotive part manufacturer, Ningbo Johnson Corporation, as it intends to increase its production by 20,000 units. Tesla news reported that the automaker has signed a procurement deal with the auto parts manufacturer. Experts hold the view that the signed agreement would send a strong message to the Chinese vehicle users who have rejected its products.
Tesla is facing many difficulties in the second largest economy of the world, as its sales staff has failed to convey the right information to the electric vehicle users. Tesla news today reported that the management of the company had tried to settle the issue by terminating contracts of 30% of its Chinese staff. This report is sufficient to explain that the high tech company is not willing to forgive its employees.
Industry sources have informed that the Chinese high tech manufacturer is well known for pioneering state-of-the-art automotive systems, which include climate control systems, air intake systems, sensor systems, and automobile air management systems. The acquisition of the German automotive manufacturer, Preh Group, has added to the manufacturing abilities of the organization, as the European business is known for producing essential parts of battery management systems. This information indicates that the company has the potential to meet the expectations of the electric vehicle manufacturer. Sources have informed that the newly acquired German company would complete the order.
The management of the Chinese organization has stated that the deal would not contribute much to its financial growth. Industry sources have reported that it has forecasted the revenue earned from the sale of the systems would be equivalent to the 10% of the 2014 income of the business. Tesla has signed the deal to promote its brand image in the automobile world, as it is famous for developing electric vehicles and power train components.
Tesla Motors news highlighted that the Chief Executive Officer, Elon Musk, has decided to begin manufacturing in the second largest economy of the world. This decision would play an important role in building the image of the Chinese business. The management is interested in rapid expansion, as it is engaged in the process of constructing a huge lithium-ion battery-manufacturing factory in the American state of Nevada.
It is quite likely that the outsourcing of the batteries would not only improve the financial position of the Ningbo, but would also provide employment opportunities to the Chinese people whose services would be required to meet the order. Now it is yet to be seen that to what extent the collaboration between both the organizations is able to satisfy the needs of the car producer.