Tesla buys NUMMI factory to produce electric sedans

May 21, 2010

(left to right) California Governor Arnold Schwarzenegger with Toyota President and CEO Akio Toyoda and Tesla CEO Elon Musk announcing the NUMMI deal last night

Electric car manufacturer Tesla Motors has purchased the former NUMMI vehicle manufacturing plant in Fremont, northern California.

The company based nearby in Palo Alto, California, announced last night that the purchase would allow it “plenty of room to grow”.

Plans are to build its Model S sedan, along with future Tesla models.

The 379-acre factory site was put up for sale earlier this month by the New United Motor Manufacturing Inc. (NUMMI), after General Motors Co. and Toyota abandoned a planned 25-year co-operation deal.

The move had seen 4,700 autoworkers and thousands of associated jobs lost.

Now, Toyota will invest $50 million in Tesla Motors, and will be working with the firm to build electric cars.

Production is expected to begin at the plant in 2012, creating 1,000 jobs.

“Most advanced”

Tesla said the NUMMI plant was one of the “largest, most advanced and cleanest” automotive production plants in the world. It had been capable of building up to 500,000 vehicles a year – around 1% of worldwide car production.

Back in March, a company called Aurica had announced that it would keep the NUMMI plant open with a plan to build electric cars there.

But now, Tesla has moved in, stating that it would be able to hire “best in class” engineers with the site.

Tesla is planning on building its Model S sedan at the NUMMI factory

“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.”

The Toyota-Tesla partnership agreement received a warm welcome from California’s Governor, Arnold Schwarzenegger.

Governor Schwarzenegger said last night: “I am thrilled with today’s announcement and can’t wait to see what this partnership brings next.”

Model S

Tesla’s second electric vehicle after its Roadster Sport, the Model S sedan is being marketed as the first pure-electric premium sedan.

First unveiled in March 2009, the vehicle is expected to be priced at $49,900 including a $7,500 federal tax credit.

Tesla is planning to build around 20,000 vehicles a year.

With an optional extended-range battery pack, the vehicle could boast a range of more than 300 miles per charge, according to its manufacturer.

Tesla said it had begun discussions to acquire the site this Spring, when it was also evaluating possible sites in Downey and Long Beach, California.

Add your comments

Jason
Yeah yeah… Until Goss132 starts ramping up production of their electric vehicle sedan, and puts them all to shame. Don't believe me? Check it out http://www.goss132.net
http://gitsgreen.com Mark Thomas
This brings the reality of an electric car almost anyone can use much closer to reality. The car is still a bit pricey but tax credit will help and this would be a great vehicle to have in California where air quality suffers significantly from auto emissions.
http://gitsgreen.com Mark Thomas
This brings the reality of an electric car almost anyone can use much closer to reality. The car is still a bit pricey but tax credit will help and this would be a great vehicle to have in California where air quality suffers significantly from auto emissions.