Toyota and Tesla have announced a partnership to develop electric vehicles in northern California.
Toyota is going to purchase $50 million of Tesla's common stock and Tesla has purchased the former NUMMI factory in Fremont, California that used to produce the Toyota Corolla and Tacoma.
"I sensed the great potential of Tesla's technology and was impressed by 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."
Production of the Model S will take place at the NUMMI plant and will bring back 1,000 employees that will produce up to 20,000 vehicles a year initially. The plant has the capability of employing up to 10,000 employees.
"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."