Toyota and Tesla in multi million pound deal

Toyota has announced it is to buy a $50m share of Silicon Valley electric car producer Tesla, in a move to overtake competitors such as Nissan's Leaf.

The Japanese car giant is already famed for its hybrid Prius model, but in line with its company philosophy ''kaizen'' meaning ''improvement,'' the manufacturer is keen to develop its vehicle portfolio into the fully-electric realm.

Toyota is parting with its cash for cars that have technical input from the electric vehicle experts at Tesla, hoping to produce new models by 2012. As well as new cars, the two companies are hoping to collaborate on innovative new EV technology and batteries, drawing up plans to create the electric cars of the future - with Toyota at the helm, this project is surely set to provide a benchmark for other manufacturers.

Toyota President Akio Toyoda commented in Car Magazine on the new deal, saying: ''Through this partnership, by working together with a venture business such as Tesla, Toyota would like to learn from the challenging spirit, quick decision-making and flexibility that Tesla has.''

Likening the American business to early Toyota, Toyoda continued: ''Decades ago, Toyota was also born as a venture business - by partnering with Tesla, my hope is that all Toyota employees will recall that venture business spirit and take on the challenges of the future.''

Car buyers await to see what offering the two companies can come up with - nevertheless, what is certain is that the deal will give Tesla increased credibility, as well as financial security. Meanwhile, Toyota will get that boost it needs to be the market leader of next generation electric cars.

Diane Bellanca, Accrington, Toyota Auris TR VVT-I

Tom Pitney, Dartford, Peugeot 307