Toyota to build RAV4 EV in Ontario

Toyota said on Friday that it will build the electric version of the RAV4 at its assembly plant in Woodstock, Ontario, beginning in 2012. The electric crossover will use powertrains supplied by Tesla from California.

The companies began transforming gasoline-powered RAV4 SUVs into functional EV prototypes last July.

Toyotat says building the production RAV4 EV on the same line as the gasoline-powered model at the Woodstock plant will streamline and simplify production, and help with quality control.

The RAV4 EV will be sold at Toyota's U.S. dealerships. Pricing and distribution details are yet to be announced.

Toyota will pay Tesla about $100 million to supply the electric powertrains for the RAV4. Tesla will build the battery, motor, gearbox and power electronics at its facility in Palo Alto, then ship them to the Toyota plant for final assembly.

By Michelle Koueiter