The Auto Writer

What are the chances that Tesla Motors will rescue NUMMI from likely closure? Somewhere between slim and none. Actually, NUMMI might interest Tesla except for one glaring problem: at five million square feet the facility is some ten times larger than what Tesla needs.

Aged NUMMI

Of course, being that the plant is twenty-five years old could be an unspoken reason, which in these days of high tech everything NUMMI is ancient. Sure, there are automotive plants far older than NUMMI, but most of those have been shuttered or updated. The few remaining plants owned by GM, Ford and Chrysler that don’t measure up will either be closed or modernized over the next year or two.

NUMMI represents a long term joint venture between the Toyota Motor Company and General Motors that suddenly became Toyota’s problem when GM went bankrupt. As part of its bid to separate good assets from bad, GM walked away from NUMMI, leaving Toyota holding the bag. You have to believe that move resulted in a number of Japanese expletives being uttered in Tokyo, but with the business and political climate decidedly pro-GM, Toyota knows that it has nothing to stand on.

Cheap, Choice Locations

Tesla also has the pick of the litter when it comes to a production facility, thanks to an economy that has gone awry. In its home state of California in particular, Tesla can choose from a number of mothballed plants including those which had nothing to do with the car industry. Expect Tesla to relocate to a facility closer to the square footage that they need and offered to them for a song. That tune will mean extensive tax breaks and abatements for the EV maker, just the enticement Tesla needs to stay put in the Golden State for the long haul.

On Tuesday, Tesla announced that the automaker would open up a powertrain plant in Palo Alto at the Stanford Research Park. Tesla says that the plant will build components for its electric vehicles as well as supply components for other car manufacturers. The automaker made a point to stress that no cars will be built at the three-plant facility which is being financed in part through the $465 million loan it received from the U.S. Energy Department in June.

Up Next: Tesla S

Earlier this year, Tesla Motors announced that the “S” seven-passenger sedan would join its line up in 2011. The current model, the $109,000 Roadster, is produced in Heath, England at the Lotus factory.

Sources: Automotive News, The Truth About Cars, Tesla Motors

See Also — Tesla Motors Picks San Jose Site (later canceled)