Toyota to take over Tesla in 2011?

Bad...

Just a rumor for now but let us wait and see.

I was down at my Lexus dealer (huge dealership...they have MB / BMW/ Lexus / Toyota/ Acura, and more) on Friday getting the snows put on my vehicle.

One of the owners of the dealership saw my Tesla jacket and asked if I had one...after I told him I would in a few weeks, we struck up an interesting conversation about TM & Toyota...the end result was that I was told that Toyota was interested in striking an agreement with TM to sell & service TM products through their Lexus dealers...might be interesting concept in areas that TM don't (and wouldn't be) opening stores anytime soon...might be a huge catalyst to help Model S sales...who knows...

That's exactly what they need for the Model S. As long as the agreement allows Tesla to take over servicing the city if they decide to put a store there though.

Yes...just to cover off the areas that TM can't (for now)..it would certainly bring on board those potential customers who would otherwise abstain from acquiring a TM product due to a fear of lack of servicing.

dsm363 said:

That's exactly what they need for the Model S. As long as the agreement allows Tesla to take over servicing the city if they decide to put a store there though.

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Jaff said:

...I was told that Toyota was interested in striking an agreement with TM to sell & service TM products through their Lexus dealers...

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I had heard the possibility of something like that mentioned elsewhere. It makes a lot of sense if it can be done in a way that doesn't tie Tesla's hands. Nothing as drastic as a take-over, though.

I have, on many occasions, suggested to TM and anyone who would listen that TM should try to make their car ownership experience as close to Lexus as possible. In my opinion, a buyout or any other deal that makes TM at least as good as Lexus is a GREAT thing IMO. I've had Mercedes and Audi in the past (I can't speak for BMW or other luxury brands), but from what I understand from other Lexus owners (and I still am... that's my other car), everyone who has had a Lexus has felt the ownership experience was better than (or at least as good) as for any other make.

Jaff said:

I was down at my Lexus dealer (huge dealership...they have MB / BMW/ Lexus / Toyota/ Acura, and more) on Friday getting the snows put on my vehicle.

One of the owners of the dealership saw my Tesla jacket and asked if I had one...after I told him I would in a few weeks, we struck up an interesting conversation about TM & Toyota...the end result was that I was told that Toyota was interested in striking an agreement with TM to sell & service TM products through their Lexus dealers...might be interesting concept in areas that TM don't (and wouldn't be) opening stores anytime soon...might be a huge catalyst to help Model S sales...who knows...

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I would love for this to be the case because that would mean I would be able to go to a Lexus dealer in NJ and not have to travel to NYC in order to get the car serviced (when I eventually get a Tesla). Seeing that Lexus dealerships are all over NJ (and other states) it would make life so much easier for people to get their Tesla's serviced.

-Shark2k

Agreed Doug...in my conversation, the words buyout or takeover were not used...it sounded like more of a marketing agreement...

doug said:

I had heard the possibility of something like that mentioned elsewhere. It makes a lot of sense if it can be done in a way that doesn't tie Tesla's hands. Nothing as drastic as a take-over, though.

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Maybe they could do something where they'd build on a small Tesla Showroom staffed by Tesla sales people at major Lexus dealerships.

The TM store is ~ 40 miles from where I live. See two potential issues.
(1) In NYC at least, parking is at a premium on 26th street. Don't know how many vehicles the store can house. Assuming there are a large number of Model S’s in for servicing, the store may not be able to accommodate a combination of planned and "unplanned" vehicles.
(2) How are Lexus service employees going to be trained and more importantly, feel about servicing a vehicle that essentially makes even a Lexus Hybrid obsolete?

I would imagine Tesla would supply the support staff if they did it. They would just be using the Lexus facilities without having to open their own dealership.

If TM and Lexus reach an accord for TM to have their products sold & serviced by Lexus dealers, I'm not sure I agree with the sentiment that all Lexus hybrids would be rendered obsolete.

The largest selling Lexus hybrid is the RX450h (was the RX400h back in 2005)...a small SUV, that TM does not have a model to compete with, and probably won't for at least another 5 years.

Also, any sort of agreement between TM & Lexus wouldn't preclude from Lexus from developing their own EV models. In fact, a stronger business relationship between TM & Lexus would probably see Lexus adopt licensing agreements to use TM's batteries, motors and gearboxes.

Regardless, hybrids, although a reasonable start to the solution (demise) of ICE vehicles, are just a phase to endure in the (declining) life span of the ICE vehicle...they are not a solution.

Iz said:

The TM store is ~ 40 miles from where I live. See two potential issues.
(1) In NYC at least, parking is at a premium on 26th street. Don't know how many vehicles the store can house. Assuming there are a large number of Model S’s in for servicing, the store may not be able to accommodate a combination of planned and "unplanned" vehicles.
(2) How are Lexus service employees going to be trained and more importantly, feel about servicing a vehicle that essentially makes even a Lexus Hybrid obsolete?

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Some type of Toyota control is inevitable. Toyota already is partnered up with Tesla, expanding that is a no-brainer. Toyota has the cash to make it happen, and Tesla would benefit from their economies of scale, marketing prowess, dealer network, etc. It's not a question of if, but when.

TM could still JV with both Lexus & MB...in fact, no reason both of these manufacturers couldn't own large blocks of TM and / but, still allow TM to JV with any party looking to license TM technology.

I'd consider this a very likely scenario.

AnOutsider said:

A full on takeover? Bad IMO. some sort of joint venture may work though.



Would be cool, but I thought that was what the Daimler deal was partially about? Sales and service from some MB dealers?

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mattjs33 said:

Some type of Toyota control is inevitable. Toyota already is partnered up with Tesla, expanding that is a no-brainer. Toyota has the cash to make it happen, and Tesla would benefit from their economies of scale, marketing prowess, dealer network, etc. It's not a question of if, but when.

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I could definitely see something like this happening.

Elon has said that he wants to change the world with these cars and its going to be tough for him to do that by building a small car company from scratch like Tesla BUT if he partnered up with a giant like Toyota or MB then they'll be able to reach his goal quickly.

Personally I think that Toyota offers the only thing that Tesla is missing; a large servicing division and a large sales force. Toyota can fill that role.

We'll see if they'll end up partnering up and, if so, what kind of partnership it'll be. Will Toyota gain ownership of Tesla and let them operate their company as a subsidiary of Toyota or will they act like partners but still be independent of each other.

Either way, i think partnering up with a big automaker is the quickest and easiest way for Tesla to go from a struggling niche auto maker to a household name.

Instant access to range extender technology should they ever decide to go that route too.