Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Tesla Motors and Toyota Motor Corporation Intend to Work Jointly on EV Development, TMC to Invest in

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
and-justice-for-all Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 06:26 AM
Original message
Tesla Motors and Toyota Motor Corporation Intend to Work Jointly on EV Development, TMC to Invest in
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.

http://www.teslamotors.com/media/press_room.php?id=2509
Printer Friendly | Permalink |  | Top
Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 06:36 AM
Response to Original message
1. It's an interesting development
http://wheels.blogs.nytimes.com/2010/05/22/some-views-of-the-toyota-tesla-deal/


What propelled the Toyota-Tesla deal? According to Mr. Reyes, in part it was simpatico personalities. Akio Toyoda, the president of the Toyota Motor Corporation, and Elon Musk, the chief executive of Tesla, “have personality traits in common,” he said. “They get along very well.”



I think they have similar views on organized labor, too. The UAW is getting out in front of this, fortunately.


http://www.reuters.com/article/idUSN2113644620100521


UAW presses Toyota, Tesla to hire union workers


DETROIT, May 21 (Reuters) - The United Auto Workers union urged Toyota Motor Corp (7203.T) and electric car start-up Tesla Motors to hire union workers when they reopen a recently closed plant near San Francisco.

UAW President Ron Gettelfinger said the news that Toyota and Tesla would tie up to build an electric vehicle at a Fremont, California, plant formerly operated by Toyota and General Motors was "welcome news."

Toyota and Tesla announced on Thursday that they would cooperate in developing electric cars, parts and production. Separately, Tesla will take over the the New United Motor Manufacturing plant -- widely known by its acronym NUMMI.


Printer Friendly | Permalink |  | Top
 
madrchsod Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 06:54 AM
Response to Reply #1
2. i doubt toyota will hire any union labor.
if they did they would be under pressure to unionize the rest of their plants and that`s something toyota wants to avoid at all costs. toyota needs every penny to maintain their us operation`s profitability.
Printer Friendly | Permalink |  | Top
 
Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 07:13 AM
Response to Reply #2
3. Tesla has not been pro-union either, historically
I wonder how this is going to go. Some reaction from a "green" free-enterprise writer.

http://www.cleantechblog.com/2010/05/go-tesla-evs-just-may-carry-cleantech.html

Friday, May 21, 2010
Go Tesla! EVs just may carry the cleantech sector this year after all


• Toyota gets a great use for the recently shut down NUMMI plant in California, making them look like the hero in that story without having to actually operate a high cost union plant again (apparently a large part of the reason they got out of it). For those that missed that story – NUMMI was a GM – Toyota JV in Fremont, the last auto plant west of the Mississippi, and apparently Toyota’s only union facility. When GM went bust (sorry when you and I decided we liked losing money in the car business), Toyota took the opportunity to back out of the JV, leaving a huge hole in the local economy (it was just about the only customer for a number of local manufacturers). California’s political bosses get a brief reprieve from their shellacking by helping with big tax breaks to ink a deal that may bring back 10% of the lost jobs (about 10 of the top legislators and administrators joined the Governator to announce it).

• The venture capitalists who backed Tesla get a new investor to pony up a chunk of the massive cash that will be required at good valuations. Even better, the backing of Toyota in my mind drastically increases the chances that a Tesla IPO can get done, despite the huge questions analysts have had on their near term revenue prospects since they filed the prospectus earlier this year.

• You and I, who are funding a big chunk of Tesla anyway with the massive $400 mm+ DOE loan guarantee, now get a foreign auto company to invest underneath us. (Of note this will be our second multi-hundred million investment into that part of the San Francisco Bay Area, since we are doing the same thing for the solar start-up Solyndra a couple of miles down the road.)

Tesla gets much needed cash, a cheap ready to go plant without union labor requirements, and access (if they are smart enough to leverage it) to the considerable manufacturing , marketing , and distribution talents of what has been up until recently the best run auto manufacturer in history. With it comes the automotive street cred that they are sorely lacking.
Filed under the “what’s the real story” side – a couple of questions have been raised by various analysts in the press.







Printer Friendly | Permalink |  | Top
 
Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 07:45 AM
Response to Reply #3
4. Three different reactions.
http://www.racewire.org/archives/2010/05/tesla_revives_nummi_plant_but_will_workers_of_color_benefit.html

Yvonne Liu
Tesla Revives NUMMI Plant, But Will Workers of Color Benefit?


Velarde is a member-organizer at LIFETIME, an organization based in Oakland, that helps single mothers on public assistance with access to higher education and employment. LIFETIME is embarking on a new campaign to ensure that low-income women of color have pathways to access good, green jobs.

The NUMMI factory has been through many incarnations. GM built it in the 1960s, at the peak of our country’s obsession with automobiles. It closed briefly in the 1980s, when the domestic industry was challenged by cheaper imports, and reopened under the joint ownership with Toyota. The plant was cited for its innovative blend of American and Japanese production techniques.

Tesla says that it plans to make its Model S in the plant, a $50,000 electric sedan, as well as develop other models with Toyota. Currently, they produce a high-end Roadster sports car, which sells for $109,000. The prices surprise Velarde. “Who can afford a $50,000 car?,” she asked. “It’s a recession now and no one can afford that, except the very rich.”

It remains to be seen if the 1,000 jobs at the new Tesla-Toyota entity will be unionized. Tesla’s CEO Elon Musk told the San Francisco Chronicle that "on the question of the union we're neutral” and the company would not encourage or oppose organizing by their workers.

Velarde doubts that the new green jobs at NUMMI will be unionized. “Why did they shut down the plant if they were going to reopen it?” she asked. “I think they’re going to bring in non-union workers; people are desperate and they’ll take any salary now.”



http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/20/MNGP1DI8OL.DTL#ixzz0ocBvtnkD

Tesla joins with Toyota to reopen Nummi plant



Tesla will use it to build the planned Model S, a $50,000 sedan that should enter production in mid-2012. Musk and Toyoda did not disclose the plant's sale price.

Musk said Tesla is adding staff at the rate of about 50 persons a month and already hiring former Nummi workers. It expects to have up to 1,000 people in Fremont within the next few years, in addition to roughly 400 people already in Palo Alto.

In an interview with The Chronicle, Musk said the new alliance would produce a joint Toyota-Tesla car that would be a Toyota vehicle powered by a Tesla drive-train, hitting the market before the Model S. The companies also plan to develop other electric vehicles together, he said.

Asked about his posture toward the United Auto Workers, which had represented Nummi's rank-and-file, Musk said, "on the question of the union we're neutral," adding that Tesla would neither encourage nor oppose workers organizing.

"We're thrilled," said Sergio Santos, president of UAW Local 2244, which had fought to keep Toyota in Fremont before it ceased production of gas-powered cars there April 1. "It's going to put some people back to work and bring a lot of jobs to California."




http://mothermuckraker.blogspot.com/2010/05/toyota-tesla-partnership-to-reopen.html

Friday, May 21, 2010
Toyota Tesla Partnership to Reopen NUMMI




First, it's great news that electric vehicles will be produced there as they produce no emissions . We desperately need vehicles like that to keep global warming in check. Mass production of EVs have to start somewhere and the sooner the better. Our Co2 levels are at an all time high and our glaciers are melting. Most scientists agree that we are moving towards extinction if we don't keep these greenhouse gasses in check. There's no doubt about it. We need to move towards ZERO greenhouse gas emissions NOW. What remains in question is the issue of labor.


We lost 4500 jobs. This new venture is expected to create 1000 jobs in the beginning. Which one of us will be hired back? Will laid off NUMMI workers get preference?

...

The projected production of the Tesla model to be produced at the former NUMMI plant is only 20,000 per year. NUMMI can produce 400,000+. This suggests that Tesla will be hiring more than their initial 1000 workers in the future as sales is expected to rise. It remains to be seen whether Tesla has a viable product for the mass market. Unlike Toyota, when NUMMI began, Tesla is starting from scratch.


Also, Toyota's investment of $50 million to buy a stake in Tesla is chump change when Toyota has tens of billions in cash. Toyota has little to lose. Some early reports on the internet have suggested that this is nothing more than a publicity stunt on Toyota's part to soften their recent spate of bad press with recalls and closing their best quality plant. What could be better than the promise of "green technology" to replace NUMMI? Is it Toyota's way of greenwashing their recent bad press on the cheap?



Printer Friendly | Permalink |  | Top
 
Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 11:57 AM
Response to Reply #4
7. kick.
Printer Friendly | Permalink |  | Top
 
HopeHoops Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 07:51 AM
Response to Original message
5. Great - an electric car without functional brakes.
:woohoo: just what we need.
Printer Friendly | Permalink |  | Top
 
TommyO Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 08:36 AM
Response to Reply #5
6. Shocking, I tell ya!
Printer Friendly | Permalink |  | Top
 
Jack_DeLeon Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-22-10 02:10 PM
Response to Original message
8. Smart move on both parts...
Alot of the richer celebrities who will likely be the first people who buy these electric cars life in California, and they will get to reopen the plant without union labor.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Wed May 01st 2024, 09:42 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC