Tesla and Toyota will become partners to produce electric vehicles

Article by Christian A., on August 25, 2010

A plant in Fremont, Calif., that was closed last year because it was too inefficient will now be used by partners, Toyota Motor Corp. and Tesla Motors Inc., to make electric vehicles. The New United Motor Manufacturing Inc. facility will be acquired by Tesla and will be manned by 1,000 workers. The two companies made the announcement in Palo Alto, Calif.

Toyota President Akio Toyoda said that Tesla's entrepreneurial spirit is admirable -- a quality that he hopes all Toyota employees will take on, considering that Toyota began as a venture business decades ago. He also said that he anticipates that Toyota will learn quick decision-making and flexibility from the venture.

To prepare NUMMI, Tesla CEO Elon Musk said that the company will spend a couple of hundred million dollars.

Earlier this year, NUMMI (a former joint venture between Toyota and General Motors) shut down amid heavy criticism from the UAW work force. Musk revealed that the negotiations to obtain the plant had concluded earlier this week.

The facility will produce about 20,000 units a year for the Model S, Tesla's next model that will debut in 2012. But Musk said that the other models that will follow will be based on the Model S platform. Toyota will invest $50 million in Tesla in exchange for the electric carmaker's common stock when it completes its planned initial public offering.

If you liked the article, share on:

Comments

Recommended

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries