Tesla, Toyota to build electric car at NUMMI plant

Mercury News ^ | 5/20/10 | Dana Hull

[NormsRevenge]

In a deal expected to create hundreds of jobs, Tesla Motors announced today that it is teaming up with Toyota to build its all-electric Model S sedan at the recently shuttered NUMMI plant in Fremont.

Under the agreement, Toyota will invest $50 million in Tesla, which will acquire the NUMMI plant and begin production of Teslas's Model S sedan in 2012. The deal is expected to create more than 1,000 new jobs

The joint venture was unveiled by Tesla's CEO Elon Musk at a 5 p.m. news conference with Gov. Arnold Schwarzenegger, who has been eager to highlight job creation. The news was hailed by Sen. Dianne Feinstein, D-Calif.

"I congratulate Tesla and Toyota today," she said in a prepared statement. "This partnership is unique, innovative, and entirely practical....As one who has followed NUMMI since its inception, I was very dismayed and disheartened by its closure in April. I celebrate the new life of opportunity which is inherent in this new venture."

Some industry analysts also endorsed the announcement.

[GeronL]

new jobs.

*heh*

[Nervous Tick]

Not a word about UAW. That could be a fly in the ointment.

[OldDeckHand]

"Not a word about UAW. That could be a fly in the ointment."

Yes, it's interesting that the UAW isn't mentioned at all in the piece.

[Bloody Sam Roberts]

Let’s hope they get shut out.

[VeniVidiVici]

Sounds to me like Toyota’s just subsidizing their lease. And don’t their cars go for around 100K?

[Dr. Sivana]

Sounds to me like Toyota’s just subsidizing their lease. And don’t their cars go for around 100K?

The Roadster does, the upcoming sedan will be (supposedly) about half of that.

[OldDeckHand]

'And don’t their cars go for around 100K?"

According to their website, the list for that vehicle - the Model S Sedan - is $49,900. It's a good looking vehicle, if not entirely practical.

[Kevmo]

For the Silicon Valley ping list

[NormsRevenge]

if only it was wireless powered.. :-]

[truthguy]

Can't see a future for BEV. The future belongs to EREV.

Tesla has put everything into BEV. Maybe they will work on EREV with Toyota. I wouldn't be at all surprised if that's what this is all about. In this way Toyota can jump start their EREV program and get on the good side of the Greens. Actually they are already on the good side of the Greens with the Prius but Toyota knows that technology will not be the future.

[Gator113]

If it would only tow my boats and trailer.

[martin_fierro]

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I see these motoring around Paly all the time.

[shorty_harris]

I used to see them racing up and down the runway at Moffett Field. The things are really tiny up close.

[FreePaul]

I believe that there were previous articles stating that Tesla was losing money on every car they sold. Maybe Toyota knows of some money saving short cuts.

[wac3rd]

Tesla is funded with a lot of stimulus money, also.

Unions + bailout $$ + no mention in the media = about right

[Nik Naym]

I think the Roadster is based on a Lotus chassis. That would explain the small size (and swell handling)

[hedgetrimmer]

They drove one from LA to the Detroit Auto Show this year. It took two weeks to get there.

[Rev DMV]

"Not a word about UAW. That could be a fly in the ointment."

Yes, it's interesting that the UAW isn't mentioned at all in the piece.

After many years IT consulting at NUMMI I've moved on to another place just this last week.

There were hints and rumors around this sort of thing happening. It makes great sense for both parties. Toyota saves face at very little cost. Tesla gets access to all the car building know how that they don't have currently. Plus the NUMMI site has some very state of the art paint and body shop facilities.

The two flys in the ointment are, MLS(old GM) which still owns the land and building and will need to be bought out, the other is the union, which has it's local headquarters located across the street.

I foresee them sticking their noses very deep into this. I already heard ex-employees on the radio asking that they get first dips on the new jobs. If I were Tesla I would immediately toss any resume from a union member.

[OldDeckHand]

"I foresee them sticking their noses very deep into this. I already heard ex-employees on the radio asking that they get first dips on the new jobs. If I were Tesla I would immediately toss any resume from a union member. "

Thanks for the info. One thing I personally didn't (and don't) understand, is the answer to this question - Is NUMMI a company (a JV between GM & Toyota), or a place? IOW, is Tesla buying out GM's share in NUMMI, or has that venture been completely dissolved, and all that remains are the buildings themselves?

If it is indeed a company and not just a "place", it seems that the Union would still clearly have some influence. If not, I would assume that whomever this new Tesla/Toyota partnership hires, would have to enter into a new collective bargaining agreement, after deciding to unionize. Is that correct?