What can Toyota learn from Tesla?
But is this mostly just PR?
More about PR than EV technology?
So, Toyota has taken a small stake in Tesla so that the two can work together to build electric cars at the NUMMI plant in California. Yet, what is the significance of this $50 million investment?
Is this really about technology, or more about Toyota trying to clean up its image?
When it comes to Toyota hybrid cars – which could comprise 30 percent of Toyota’s overall fleet by 2020 according to company forecasts – California is easily the most important state. Yet, even in hybrid-loving California there have been protests against Toyota for closing down the NUMMI plant that Toyota ran jointly with GM.
Then, of course, the Michigan delegation in Congress is again ramping up its attack against Toyota as the Big 3 slowly work their way, collectively, back into the black. The bad news for Toyota – even if cars are no longer accelerating out of control – just won’t go away.
Quite simply, Toyota needs to do more to restore its image in the public’s eye, and the Tesla venture certainly provides a nice shot of positive PR. Since last night, the story has took center stage for much of the automotive press. Likewise, the venture makes Toyota seem a little less insular, something critics have pounded upon since the Toyota-gate recall scandal began.
Nonetheless, in all likelihood, the relationship between Toyota and Tesla probably won’t lead to a huge change in EV philosophy at Toyota, but it should, minimally, provide Tesla with a more comprehensive understanding of efficient mass production techniques. More important, hopefully, it will also remind Toyota that an entrepreneurial spirit - which Tesla founder Elon Musk exudes – is still a critical piece of long term automotive success.
It needs an update from time to time. Some will sketch their designs by hand, while others use computer programs to assist in the process.
a flashlight powered car that can go 200 miles on a flat straightaway without stopping and takes all night to chargeup, where you have to devy up 60,000 in deposit to buy, and you just get a picture of the actual car, and a signed contract without legal responsibility, may be OK for a tiny portion of people with money to give away to criminality, but reality has a different side to it. Words are cheap, but, when the costs become greater than the income, then you are finished, unless you can continue to come up with different investment schemes until such time as there are no more available, and then your finished
Nothing other than you can get away with anything in america with the right amount of cash, and legal assistence
Interesting point, usbseawolf2000. Without doubt, Toyota has a unique relationship with Sanyo, and perhaps Tesla’s BMS is further along than Toyota’s, particularly for longer range EVs – something Toyota hasn’t seemed to put too much research into. That plus a good dose of PR would definitely fit the $50 million dollar price tag better.
No advertising, Paul? Are you kidding me? GM has been using the Volt in ads for years already. They’ve organized major PR events throughout the US for years, several of which I have attended. The Nissan Leaf has been advertised all over the Internet for at least several months, and more recently a number of ads have shown up on TV.
17,000 reservations? 50,000 by December? That’s nothing. It’s mostly early adopters. We’ll be lucky to sell 100,000 EVs in the US per year anytime soon, which means we’re having no significant effect at all on global warming or oil dependence. Likewise, even if we achieve Carlos Ghosns’ prediction of 10 percent EV by 2020, we’re still accomplishing little. We’re still guaranteeing that we will be heavily dependent upon foreign oil for many decades.
Likewise, I don’t buy the “Now, should Israel attack Iran, or peak oil begin to make itself known in the world’s oil markets, all bets are off” and that will lead to massive EV adoption arguments. The consumer studies on this issue indicate that ironically and unfortunately, as gas prices go higher, consumers will choose to spend less on autos, particularly up front. This could severely hurt the US auto industry and the economy, especially coupled with higher fuel prices that will make the cost of everything go up. Let’s remember that the majority of our entire food economy is built upon cheap oil.
Thus, if consumers then buy EVs, they’ll be much smaller EVs that US automakers have yet to even conceptualize, unlike our Japanese counterparts, for instance.
The sad fact is that plug-ins are going to do little to change America’s energy paradigm anytime soon without a few major breakthroughs in technology, such as new batteries, new dynamic charging, battery-swapping, etc. According to studies from Argonne, Oxford, et al, such breakthroughs will take decades to make their way into the auto market.
At some point, we have to stop padding ourselves on the back because GM might make 50,000 green vehicles per year. At some point, we have to start focusing on real world results and real world potential. If we do that, then there is no choice but to realize that plug-ins are only going to be a small, but growing, piece of the solution for decades. In the interim, other technologies could be far more important, especially in terms of legacy effects – the real killer when it comes to foreign oil dependence.
If we don’t address this, then if we do hit peak oil, or war develops in the Middle East, it could be decades before our economy recovers.
At some point we have to demand more of automakers, of the government, of consumers if we want real results in the next decade or two. Greenwashing that away with 100,000 plug-in vehicles is not a solution.
I could care less what this means for Toyota.
I’m very happy to see that Tesla now has an assembly plant where they can build the Model S.
The most important aspect of this announcement to me is that we’ll have one more major OEM producing EVs soon. The number of people signing up for the Nissan Leaf has exceeded 17,000, and I expect that to hit over 50,000 by the December release date. Similarly, when the Volt’s price is announced in October or so, and they start taking reservations, the line will form quickly.
So far, all this interest is sans any advertising for the cars. Once that happens, things will pick up fast. But the real action happens as these thousands of American begin to bring their new cars home, experience them like those of us lucky enough to drive the RAV4 EV and EV1s of the past decade, then they’ll be telling all their friends and relatives about the experience and word of mouth will touch off a frenzy.
Now, should Israel attack Iran, or peak oil begin to make itself known in the world’s oil markets, all bets are off. There won’t be tens of thousands in line for these cars, there’ll be millions. This is why the Toyota/Tesla announcement is important. We’re going to need all the EVs we can get.
Tesla has the battery management system that can utilize mass produced laptop battery cells. Sanyo mostly owned by Toyota is providing the battery to Tesla for the model S.
Toyota can use Tesla BMS with Sanyo’s mass produced lithium cells to undercut Nissan.
That’s an interesting thought on Ford, KP, but I wonder what they would have had to gain, unless Tesla really has thought so far out-of-the-box that they’ve done something the Big Boys have completely overlooked. However, if that were the case, I would have expected a much bigger investment from Toyota, or even Daimler for that matter.
Thus, while I believe Toyota will pick up some knowledge from Tesla, I really do feel this was more about PR than technological secrets. Unlike Toyota, Ford has a very positive image. In general, nobody is questioning Ford’s long term potential, even though their corporate balance sheet is far from stable, especially compared to Toyota. Yet, despite hordes of cash, Toyota’s image has been shattered – whether deservedly or not. Too often perception has nothing to do with the truth, but it is what it is and Toyota needs to deal with it. Toyota needs positive press that isn’t about recalls, especially PR that shows they are still preparing for the future.
And this was undoubtedly great PR. Hopefully, it leads to more than that. I’d love to see Toyota help Tesla shock the world with a much more cost-effective EV. If that’s truly where this is heading, then I agree, I would have liked to see Ford make such a move.
I like it. I think Ford should have tried to invest in Tesla. I think GM is too proud to have done so because with the Volt it would look like they were teaming with Tesla to fill voids in the vapor of their technology. Toyota is making a smart move. They have what Toyota needs: a reputation for built quality in large volumes and an empty factory to do it in.