Tesla Motors acquires west Michigan Auto Supplier

On Wednesday, electric car maker Tesla Motors confirmed that it has acquired a west Michigan auto supplier this week.

Tesla spokeswoman Alexis Georgeson said the company will purchase Riviera Tool, LLC located at 5460 Executive Parkway SE and renamed it Tesla Tool and Die Factory.

Riviera has about 100 employees and Tesla expects the majority will remain after the sale. However, the sale price was not disclosed.

Georgeson said, "This acquisition enables Tesla to bring additional capabilities in-house, streamlining production and facilitating the introduction of Model X and increased production at the Tesla Fremont (California) factory. This is our first presence in Michigan”.

Tesla builds its cars in Fremont at a former joint venture between General Motors Corp. and Toyota Motor Corp.

Large-scale, custom metal stamping die systems that are used in the high-speed production of sheet metal parts are designed, developed and manufactured by Riviera designs. Its customers have included Detroit's Big Three automakers, BMW, Nissan and Daimler.

Tesla Motors said that it has planned aggressive growth this year after producing about 11,000 vehicles in the first quarter. The company anticipates producing 55,000 vehicles this year following nearly 35,000 last year. Production of Tesla's first SUV, the Model X, is scheduled to begin in the third quarter.

Riviera has been a key supplier to Tesla for the Model S. According to Georgeson, Riviera will complete current projects for other automakers. However, it will wind those operations to focus on the requirements of Tesla.

Tesla, which has a market capitalization of about $29 billion, aims to sell 500,000 electric vehicles a year by 2020.

CEO Elon Musk noted that delivery for Tesla means getting a car to the customer, not into a dealer channel as with the traditional automakers.