Tesla to Downey, CA - Drop dead!
If you're driving through Downey, CA, I wouldn't recommend driving a Tesla. A dream of Downey leaders to re-open an old Apollo spacecraft facility in their city, just south of Los Angeles, where Tesla told the city they wanted to build the cars, has fallen through.
And many in Downey are pissed.
Tesla buys cars from Lotus and ships them to the US where they are retro-fitted with electric motors and batteries for their all-electric sporty car. They have another, larger car planned for next year.
Tesla EV Roadster
Downey was once at the center, like much of Southern California, of American aerospace manufacturing. The city boomed from the '50s through the early '90s when the country's space program lost much of its funding and seemed to lose its own dreams for the future.
So when Tesla and Downey made the announcement recently, after nearly a year of negotiation, that an old space capsule plant would be re-opened for Tesla to build their EVs, a lot of people thought it a good idea. More than 1,000 Downey-area people could be hired in an area which has been hard-hit by the recession.
Downey and Tesla were to sign their agreement last Friday, May 21st, and city leaders were looking forward to the ceremony as an early Christmas - and a sure way to guarantee their re-elections.
Last Wednesday, the civic leaders of Downey were in Sacramento, lobbying for and getting much of the approval and money they needed to lure Tesla to town, retrofit the facility, make changes to historic buildings (space is history in So Cal) and went home happy.
So on Thursday, about 24 hours before the Downey city council was to vote on the final agreement with Tesla, an AP reporter called a councilperson and asked what he thought of a press conference held earlier that day in Sacramento with Tesla officials and Gov. Schwarzenegger.
"What press conference? I thought we were making the announcement together here in Downey, not at Tesla headquarters," thought one councilperson who appeared on the KPRW Santa Monica daily news show "Which Way LA?" hosted by veteran award-winning So Cal newsman Warren Olney. Tesla's Chairman, Product Architect and CEO Elon Musk appeared on the show as well. Both were cordial to each other and the councilperson admitted that from a business standpoint, Toyota had made Tesla the proverbial offer they couldn't refuse.
Tesla had made a stunning announcement - just six weeks after Toyota president Akio Toyoda placed a call to Musk, Tesla announced that Toyota was going to infuse some $50 million into the EV-maker. Teslas are going to be built at a car plant in Fremont, CA (just south of San Francisco), which was shared by Toyota and GM, a plant recently closed down, putting some 5,000 mostly-union workers out of work. The plant, called New United Motor Manufacturing Inc. (NUMMI) was a joint venture between the two auto giants, with Toyota running the plant, making Tacoma trucks and Corollas and GM building Pontiac Vibes there, too.
The plant is a monstrous 5.5 million square feet and fully-equipped with automotive assembly lines. Toyota gets some good press from their investment and plant re-opening (1,000 people may be hired initially) and will learn more about EV technology and maybe share some of their knowledge with Tesla. Elon Musk, is now on the big map as far as mass-produced EVs are concerned and so is California. Toyota might come up with a challenger for the soon-to-be-on-sale Nissan Leaf EV.
The only loser here is Downey and the people there who thought they might be getting new gigs in the green economy. Was it bad faith negotiating on Tesla's part? Or just business? What do you think? When will the first lawsuit from Downey be filed? Things were a lot simpler when Downey was mostly known as the home of Karen and Richard Carpenter.
Los Angeles Times - Toyota does it again
In yesterday's Sunday edition, the lead story on the LA Times' front page was yet another expose' by writer Ken Bensinger about Toyota failing to notify the public about a serious problem. Bensinger has broken much of the big news about the Toyota scandal and we predict a Pulitzer for him and the paper this year.
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