California = Tesla + Toyota

[vfx]

This Toyota-Tesla deal is a big F****** deal. :biggrin:

Is your last name Biden? :smile:

 

[vfx]

I wonder if any of Toyota's recent image troubles made them scramble for some "new news" and re-rebranding?

 

[vfx]

Top story on Google news. 601 articles.

World's largest carmaker and Tesla make people notice.

From left, Toyota CEO Akio Toyoda, Tesla CEO Elon Musk, and Calif. Gov., Arnold Schwarzenegger laugh during a news conference at Tesla headquarters in Palo Alto, Calif., Thursday, May 20, 2010. Tesla will partner with Toyota Motors Corp. to build electric cars at a recently shuttered auto plant in the San Francisco Bay area.

http://www.npr.org/templates/story/story.php?storyId=127027119

Anyone have video?

 

[doug]

Anyone have video?

Yes, can see it here: http://gov.ca.gov/press-release/15219/

 

[doug]

I'd also hate to be Downey right now, although it is unclear how much of it is Downey being over enthusiastic and how much is it Tesla stringing them along (there's lots of evidence of the latter, since we've seen it happen to New Mexico).

Plenty of evidence of the former as well. A bunch of Downey councilmen rode the bus to SpaceX to personally bring Elon a gift basket (Elon wasn't even there). One councilman even made a bizarre love video to Tesla. They were certainly eager in a way that was more public than other locations. And now they are publicly pissed.

 

[2blue4u]

WOW! I've just ordered a Prius (yesterday) as a stop-gap to take me up to Model S availability. Does this mean I can stick a Tesla badge on it :biggrin: :tongue:

But where does this leave the Germans?

 

[mpt]

Official PR:

Tesla Motors Announces Factory in Northern California
Silicon Valley factory will become the home of the Model S sedan
PALO ALTO, Calif. -- Tesla Motors has purchased the former NUMMI factory in Fremont, California, where it will build the Model S sedan and future Tesla vehicles. As recently as April of 2010, the NUMMI factory was used by Toyota to produce the Corolla and Tacoma vehicles using the industry-leading Toyota production system. It is one of the largest, most advanced and cleanest automotive production plants in the world.

It is capable of producing half a million vehicles per year or approximately 1 percent of total worldwide car production. The award-winning plant was the birthplace of the vaunted Toyota Production System, a widely copied system that lead to dramatic quality improvements and unprecedented manufacturing flexibility and worker satisfaction.

The Model S is expected to be the first pure electric premium sedan and is designed from the ground up to take full advantage of the electric vehicle architecture. The sedan, which Tesla unveiled in March 2009, has an anticipated base price of $49,900, including a federal tax credit, and is intended to deliver the foremost design and technology in the automotive world. With an optional extended-range battery pack, the Model S will travel over 300 miles per charge.

The factory is located in the city of Fremont near Northern California’s Silicon Valley, very near Tesla’s Palo Alto headquarters. The location means Tesla can hire best-in-class engineers in Silicon Valley. The short distance also ensures a tight feedback loop between engineering, manufacturing and other divisions within the company.

"The Tesla Factory effectively leverages an ideal combination of hardcore Silicon Valley engineering talent, traditional automotive engineering talent and the proven Toyota production system," said Tesla CEO Elon Musk. "The new Tesla Factory will give us plenty of room to grow."
Toyota produced its last car there just last month. Tesla began discussions to acquire the site this spring, when it was also evaluating opportunities in Downey and Long Beach. The turnkey nature of the facility with its recent production of top quality vehicles and its considerable room for expansion made it stand out from other sites.

Tesla Motors and Toyota Motor Corporation Intend to Work Jointly on EV Development, TMC to Invest in Tesla
PALO ALTO, CALIFORNIA, U.S.A. – TESLA MOTORS, INC. (Tesla) and TOYOTA MOTOR CORPORATION (TMC) today announced that they intend to cooperate on the development of electric vehicles, parts, and production system and engineering support.

The two companies intend to form a specialist team to further those efforts. TMC has agreed to purchase $50 million of Tesla’s common stock issued in a private placement to close immediately subsequent to the closing of Tesla’s currently planned initial public offering.

"I’ve felt an infinite possibility about Tesla’s technology and its dedication to monozukuri (Toyota’s approach to manufacturing)," said TMC President Akio Toyoda. "Through this partnership, by working together with a venture business such as Tesla, Toyota would like to learn from the challenging spirit, quick decision-making, and flexibility that Tesla has. Decades ago, Toyota was also born as a venture business. By partnering with Tesla, my hope is that all Toyota employees will recall that ‘venture business spirit,’ and take on the challenges of the future."
"Toyota is a company founded on innovation, quality, and commitment to sustainable mobility. It is an honor and a powerful endorsement of our technology that Toyota would choose to invest in and partner with Tesla,” said Tesla CEO and cofounder Elon Musk. “We look forward to learning and benefiting from Toyota’s legendary engineering, manufacturing, and production expertise."
TMC has, since its foundation in 1937, operated under the philosophy of “contributing to the society through the manufacture of automobiles,” and made cars that satisfy its many customers around the world. TMC introduced the first-generation Prius hybrid vehicle in 1997, and produced approximately 2.5 million hybrids in the twelve years since. Late last year, TMC started lease of Prius Plug-in Hybrids, which can be charged using an external power source such as a household electric outlet. The company also plans to introduce EVs into the market by 2012.
Tesla's goal is to produce increasingly affordable electric cars to mainstream buyers – relentlessly driving down the cost of EVs. Palo Alto, CA-based Tesla has delivered more than 1000 Roadsters to customers in North America, Europe and Asia. Tesla designs and manufactures EVs and EV powertrain components. It is currently the only automaker in the U.S. that builds and sells highway-capable EVs in serial production. The Tesla Roadster accelerates faster than most sports cars yet produces no emissions. Tesla service rangers make house calls to service Roadsters.

About Tesla
Tesla's goal is to produce increasingly affordable electric cars to mainstream buyers – relentlessly driving down the cost of EVs. Palo Alto, CA-based Tesla has delivered more than 1000 Roadsters to customers in North America, Europe and Asia. Tesla designs and manufactures EVs and EV powertrain components. It is currently the only automaker in the U.S. that builds and sells highway-capable EVs in serial production. The Tesla Roadster accelerates faster than most sports cars yet produces no emissions. Tesla Service Rangers make house calls to service Roadsters.

 

[dpeilow]

^ yes that was already on their website.

 

[tdelta1000]

This quote from Elon Musk may be considered the real reason why Tesla made the switch.

“The Tesla Factory effectively leverages an ideal combination of hardcore Silicon Valley engineering talent, traditional automotive engineering talent and the proven Toyota production system,” said Tesla CEO Elon Musk. “The new Tesla Factory will give us plenty of room to grow.”

Toyota produced its last car there just last month. Tesla began discussions to acquire the site this spring, when it was also evaluating opportunities in Downey and Long Beach. The turnkey nature of the facility with its recent production of top quality vehicles and its considerable room for expansion made it stand out from other sites.

 

[Iz]

Wow! This is a BIG DEAL!!

Seems as if Downey went out of their way to attract Tesla. At least the toxic waste rumors will not be an issue.

What about Daimler?

Is there still an 18-month window to retool the NUMMI site? Must be some economies of scale that will shorten that window.

 

[Cobos]

I'd think the recent plane crash might have played a bit into this decision as well. If I understood correctly using Downey would have meant a lot of similar long drives or short plane trips for the engineers at the drivetrain plant and HQ down to the Model S assembly plant. This should now be a half-hour drive which will practically shorten the communication loop and make accidents like the one they had less likely.

Cobos

 

[vfx]

Yes, can see it here

Thanks Doug,

*Sounds like Toyoda got a ride in the Roadster and saw the light.

*Very funny moment when Toyoda finishes his talk.

 

[vfx]

This one headlines that Toyota is doing this as a reaction to the Nissan LEAF.

A valid point.

Toyota has pioneered the mass-market hybrid – a type of car that will sell in far greater number than electric cars for the foreseeable future. However, the forthcoming Nissan Leaf makes it vital that Toyota makes an investment in the electric car market. $50m is a small sum in car manufacturing terms, but Tesla will make good use of it; it is a dynamic company that already leads the world in high-performance electric vehicles.

 

[dpeilow]

It's also interesting that Toyota had a battery arrangement with Panasonic (albeit a different type of cell). They could be the matchmaker here.

By the way, Toyota has a long standing relationship with Lotus (going back to early MR2s) so it also completes that triangle.

 

[ChargeIt!]

So ... just a side comment ... from now on ... we need to watch our initials ... "TMC" means what ? (Toyota Motors Corp., Tesla Motors Club, other ?, "Toysla Motors Corp." )

 

[doug]

So ... just a side comment ... from now on ... we need to watch our initials ... "TMC" means what ? (Toyota Motors Corp., Tesla Motors Club, other ?, "Toysla Motors Corp." )

It's come up before:

Off topic: I should mention that within this forum, we tend to use TMC to refer to us, Tesla Motors Club, and TM to refer to Tesla Motors. Outside the forum, TMC likely means Toyota Motor Corporation (or perhaps an optical table vendor for those who work with lasers). Btw, Tesla Motors the company is officially "Tesla Motors, Inc." which might be abbreviated as TMI, but that (like this post) would be too much information. :wink:

 

[doug]

Local NPR coverage:

Tesla and Toyota Partnership - The California Report (3 minute audio clip)

The last major auto manufacturing facility on the West Coast, closed on April 1st, will reopen under new management. New United Motor Manufacturing Inc. was a joint partnership between Toyota and GM which fell apart after GM filed bankruptcy. Now the Japanese auto giant is teaming up with Tesla Motors, an electric car company based in Palo Alto. Akio Toyoda, CEO of the world's largest automaker, flew in from Japan to make the announcement yesterday afternoon. He said Toyota will invest $50 million dollars in Tesla when the start up begins selling stock to the public.

Continuing NUMMI coverge: Shifting Gears

 

[doug]

Currently every other post on TTACs is about this Toyota deal and they are surprisingly positive:

BREAKING: Toyota And Tesla Partnering On EV? - thetruthaboutcars.com

Toyota To Buy $50m Stake In Tesla, Tesla To Buy NUMMI, Joint EV Planned - thetruthaboutcars.com

The Truth About Toyota And Tesla - thetruthaboutcars.com

About a month ago, “Mr. Toyoda mentioned to one of our engineers that he would like to drive a Tesla roadster,” said Paul Nodasco, spokesperson at the Toyota HQ in Tokyo, to TTAC. A visit and a test drive was quickly arranged. If you listened to Toyoda’s remarks during the announcement, you heard him say that “during a visit here earlier this spring, Mr. Musk kindly gave me an opportunity to drive one of Tesla’s electric vehicles.” That was the polite version of Toyoda’s desire to get behind the wheel of one of the rare electro-cars, and Musk jumping to the occasion and into the passenger seat.

 

[vfx]

Analysis: Toyota just blinked

http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article7132659.ece

Lurking behind Toyota’s investment in Tesla is real uncertainty over which of a number of technologies will prevail in the coming “format war” between vehicle engines.

 

[TEG]

I have a deposit down for a Leaf... But now with this, do I bail and wait 3+ (?) years more for a Toyota/Tesla smaller sedan?

Model S is too much car for me, but a $30K Tesla/Toyota would be just what I want. If one goal of this partnership is to send a FUD message at the Leaf, it is sort-of working... I have owned multiple Toyota products and think of them as a brand of choice. I have never owned a Nissan, and the Leaf was the first product they put out that turned my attention to them. Given equivalent products I would tend to go for the Toyota over the Nissan without hesitation, but waiting 3+ extra years may not be practical.

By the way, did anyone else notice the coincidence that Tesla send a 'boatload' of Roadsters to Tokyo just a month before this announcement?