Toyota, already well known as a pioneer for its work on hybrid vehicles like the popular Toyota Prius, is now turning its focus on electric vehicles. That’s thanks to a new partnership with the the equally innovative Tesla Motors, “the only automaker in the U.S. that builds and sells highway-capable EVs in serial production.”
The heart of the deal is Toyota’s agreement to buy $50 million worth of Tesla common stock, with Tesla also taking over the former New United Motor Manufacturing Inc. (NUMMI) in California. That facility was originally designed for joint Toyota/GM projects, including the production of the Toyota Matrix/Pontiac Vibe.
The goal of this Toyota/Tesla tie-up is for the automakers to jointly develop new electric vehicles as well as the production and engineering support needed to get them to market.
“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.”
On Toyota’s part, the automaker gets to work with a company that boasts proven success in building and selling EVs in the U.S. Tesla has already delivered more than 1,000 of its Roadsters to North American customers, an especially impressive feat when one considers these are $100,000+ premium sports cars that put up super-car performance numbers. Because its electric powertrain offers maximum torque as soon as the driver touches the accelerator pedal, the Roadster can showcase an electrifying 0-60 time of just 3.7 seconds. Yet it also has a range of 245 miles and can be charged in as few as 3.5 hours with a Tesla home charger.
Just as important for Toyota is the chance to re-invigorate the company’s work ethic.
“I sensed the great potential of Tesla’s technology and was impressed by its dedication to monozukuri (Toyota’s approach to manufacturing),” said Toyota 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.”
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