With the partnership between Tesla Motors Inc. and Toyota Motors Corp., the former New United Motor Manufacturing Inc. (Nummi) plant in Fremont, Calif., will reopen its doors in 2012.
Tesla will build its Model S luxury sedan that can travel 300 miles per charge, and other future electric vehicles at the Nummi plant.
In the partnership deal, Toyota will invest $50 million into Tesla and the Fremont plant. Tesla will provide Toyota with its electric drive technology, which Toyota will use to produce its own electric vehicle later on.
At a news conference held at its Palo Alto headquarters, Tesla CEO Elon Musk said the reopening of the factory will generate an estimated 10,000 jobs for engineers, suppliers and factory workers. Musk said Telsa would start to hire workers at a rate of about 50 per month.
Tesla spokeswoman Khobi Brooklyn said the company’s operation at the Nummi plant will start off small when the Tesla begins its operations in early 2012.
“The former Nummi plant is huge and our operation there will be very small,” Brooklyn said at a press conference. “When we ramp up our production, it will be 20,000 cars a year. The plant is an investment in our future.”
Up until April of this year, Toyota produced its Corolla, Tundra, and Tacoma vehicles at the Nummi plant. The factory can produce half a million vehicles in a year.
Brooklyn also said that Tesla will not abandon its Palo Alto headquarters, but will use both locations to enhance production of Tesla vehicles.
“This is Tesla’s headquarters and we moved here just two months ago,” Brooklyn said. “We have every intention of staying. Corporate is here, our engineers are here and this is also where we will build our powertrain.”
Tesla had been looking at Southern California sites in Downey and Long Beach before deciding on purchasing the former Toyota plant.