GM Out in Joint-Venture Plant With Toyota
By Bill Visnic June 29, 2009By Bill Visnic
The status of the New United Motor Manufacturing Inc. General Motors Corp.-Toyota Motor Corp. manufacturing joint-venture assembly plant in Fremont, California, is decided:
GM is out.
Speculation about GM's involvement in the NUMMI facility -- opened in 1984 -- began immediately after GM's filing for Chapter 11 bankruptcy reorganization on June 1. The two companies currently make individually badged versions of the Toyota Matrix/Pontiac Vibe at the NUMMI site; Toyota also makes versions of the Tacoma pickup.
GM announced today its ownership in NUMMI will go along with the company's discarded liabilities in the "old" GM it seeks to form as part of its Chapter 11 restructuring.
"As part of its long-term viability plan, General Motors has decided that its ownership stake in the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota will not be a part of the 'New GM,'" Troy Clarke, president of GM North America, said in a statement.
"After extensive analysis, GM and Toyota could not reach an agreement on a future product plan that made sense for all parties. Accordingly, NUMMI will end production of vehicles for GM in August, and there are no future GM vehicles planned for the joint venture at this time," Clarke continued.
"Given that, GM believes it is in the best interest of the 'New GM' and its stakeholders that we place our ownership interest in NUMMI in 'Old GM.' We have enjoyed a very positive and beneficial partnership with Toyota for the past 25 years, and we remain open to future opportunities of mutual interest."
With the Pontiac division being disbanded in 2010, GM needed to make provisions for discontinuing the Vibe; short of a major production shift that also would require coordination with Toyota, it appeared there would be few options for GM to remain in the NUMMI venture, which is the only full-scale automotive assembly plant in California.
Photo courtesy GM:
1. Pontiac Vibe production ceases in August, according to GM.
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Ford could take the Vibe and make it a Mercury. Since they are going small anyway.
I'm surprised GM isn't going to make Buick and GMC variants now that they've killed off the division with the youngest buyer demographics. They need to do \something\; 22" wheels on the La Crosse?
Ford hasn't had a compact wagon (sorry,CUV) since the demise of the Focus model. Maybe they will bring over the Kuga from Europe.
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