Toyota and Tesla to tag-team on EV production

The recently shuttered New United Motor Manufacturing, Inc (NUMMI) facility, formerly a joint venture between Toyota and General Motors, has secured an eleventh-hour reprieve.

During a press conference late last week at Tesla's Palo Alto headquarters, California governor Arnold Schwarzenegger, flanked by Tesla CEO Elon Musk and Toyota CEO Akio Toyoda, announced the two companies will combine efforts to produce the all-electric Tesla Model S at the Fremont (California) facility from 2012.

Representing a $50M investment from Toyota, the plant can now tool-up for production of the sporty environmental crusader, while at the same time re-hiring almost 1000 ex-NUMMI employees.

Speaking at the conference, Musk said the joint venture could eventually create up to 10,000 new jobs.

"Toyota is making an investment in Tesla. We're going to also be at the NUMMI plant," said Musk. "We will be purchasing the NUMMI plant and making Model S and other cars there."

While keeping mum on the specifics of the "other cars" and indeed the partnership's structure, Musk did say Tesla would contribute "a couple of hundred million" dollars in the facility over the next few years.

The deal has taken eight weeks to bear fruit, with Toyoda himself travelling to the US to meet with Musk face-to-face.

"I myself spent time at NUMMI and learned much of working in America there and feel a sense of attachment there," Toyoda said. "The DNA developed at NUMMI will live on in an industry for the future."

Toyoda, himself a keen motor sport enthusiast, enjoyed a test-track drive of the Tesla roadster during his stay, saying the vehicle had inspired him.

"Not only was I impressed by the technology but I felt this energy seeing they made the vehicle in extremely short time," Toyoda said. "I felt the wind, the wind of the future while driving. I talked with Mr. Musk and was extremely moved by his dedication."

Heading up the new joint venture is former Toyota production engineering general manager, Gilbert Passin. With 23 years automotive experience, Passin comes to the project with a high-ranking CV including names such as Volvo, Mack and Renault.

Determined to become an electric vehicle tour de force, the latest announcement follows news of a $465M Department of Energy loan guarantee sprung to Tesla for its battery manufacturing plant last month. The company also filed publically in January hoping to raise a further $100M in capital.

Toyota, manufacturer of the popular Prius and Camry Hybrid models, said it plans to introduce its own fully electric vehicle by 2012.

Tesla is also owned in-part by Daimler AG, the German firm recently purchasing a 10 per cent equity stake in the US company.

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