Toyota and Tesla to team up on electric cars, extended warranties recommended
 With its competition promising to introduce fully electric cars in the near future, Toyota is making its move to enter the growing market. The engines that run electric cars are more complex than gas-powered vehicles, and thus more prone to breakdown and more expensive to repair. Potential buyers should consider an extended warranty to fully protect their car.
Toyota has acquired a $50 million stake in the electric start up company. Tesla will buy a recently shuttered factory in California and begin work on its Model S car in joint development with Toyota.
The United Auto Workers immediately released a statement urging Tesla and Toyota to rehire workers who were laid off when the 25-year-old factory was closed in April.
The start-up company currently makes an electric roadster, but it is expensive and not widely available. The company is losing $230 million, but is being kept afloat by a government loan and Toyota's recent cash injection.
As electric cars begin to hit showrooms, consumers should protect themselves from the relatively untested and expensive to maintain vehicles. Bumper-to-bumper warranties from companies like AA Auto Protection will allow drivers to know exactly what parts of their vehicles are protected, gas-powered or not.
5/21/2010 10:25:38 PM
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