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Posted by: Anthony Lim

Tesla Motors and Toyota Motor Corporation have announced that they intend to cooperate on the development of electric vehicles. The two companies intend to form a specialist team to further those efforts, and Toyota is investing some US$50mil into the venture through the purchase of Tesla’s common stock.

Tesla has purchased the former New United Motor Manufacturing Inc factory in Fremont, California, where it will build the Model S sedan and future Tesla vehicles. Deliveries of the Model S are expected to begin in 2012.

The plant, which began operations in 1984 as a joint venture between General Motors and Toyota, was shuttered last month. Capable of producing 500,000 vehicles annually, it is the birthplace of the vaunted Toyota Production System, a widely copied system that led to dramatic quality improvements and unprecedented manufacturing flexibility and worker satisfaction.