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Toyota and Tesla join forces to develop electric vehicles
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In what could be a major boost for both the present and future of the auto industry, Toyota Motor Corporation and Tesla Motors recently announced that they will cooperate on the development of electric vehicles. Improved production systems, parts and engineering support are part of the development plan.
A team of specialists will be formed by the two companies to address these challenges. As part of the deal, Toyota has agreed to purchase $50 million worth of Tesla’s common stock, issued in a private placement.
TMC president Akio Toyoda said he has felt "an infinite possibility about Tesla’s technology and its dedication to monozukuri (Toyota’s approach to manufacturing)." He also said he hoped partnering with Tesla would allow his company to recapture its "venture business spirit" and "take on the challenges of the future."
Tesla’s CEO and co-founder, Elon Musk, called Toyota’s decision to partner with his company "an honor and a powerful endorsement of our technology."
Tesla is currently working to bring affordable electric cars to mainstream buyers and drive down the cost of electric vehicles. So far, the Palo Alto, California-based company has delivered more than 1,000 of its notable Roadster cars to customers on three continents. Tesla is also currently the only U.S. automaker that uses serial production to build and sell electric vehicles that are highway-capable.
Toyota’s hybrid cars have become extremely popular, especially its Prius Hybrid, which was first introduced in 1997. The company began leasing Prius Plug-in Hybrids late last year and says it plans to bring electric vehicles to the market by 2012.
The highly publicized deal between the two companies has seen mixed reaction from experts. Yoshio Takahashi of the Wall Street Journal called it a curious move, pointing out that Toyota has so far taken a "cautious approach" when it comes to pure-electric cars. Nevertheless, Takahashi says the move is sure to help Toyota’s green image and reputation in the U.S. market.
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