GM ends 25 year joint venture in California with Toyota
06-29-09, 06:26 PM
#1
Lexus Fanatic
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GM ends 25 year joint venture in California with Toyota
General Motors (GMGMQ Quote) says it will pull out of its 25-year old joint venture with Toyota (TM Quote) in which the two companies shared a Fremont, Calif., manufacturing plant.
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Market ActivityToyota Motor Corporation ADS| TM
The operation was called New United Motor Manufacturing Inc., or NUMMI. It is ending because GM and Toyota "could not reach an agreement on a future product plan that made sense for both parties," said Troy Clarke, president of GM North America, in a prepared statement.
NUMMI will end production of vehicles for GM in August, GM said. It had produced the Toyota Corolla, the Toyota Tacoma pickup truck and the Pontiac Vibe. GM has said it will phase out the Pontiac brand.
"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," Clarke said.
However, Clarke said, NUMMI is expected to be a part of the "Old GM," or the group of assets slated to be sold off or shut down in bankruptcy court.
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Market ActivityToyota Motor Corporation ADS| TM
The operation was called New United Motor Manufacturing Inc., or NUMMI. It is ending because GM and Toyota "could not reach an agreement on a future product plan that made sense for both parties," said Troy Clarke, president of GM North America, in a prepared statement.
NUMMI will end production of vehicles for GM in August, GM said. It had produced the Toyota Corolla, the Toyota Tacoma pickup truck and the Pontiac Vibe. GM has said it will phase out the Pontiac brand.
"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," Clarke said.
However, Clarke said, NUMMI is expected to be a part of the "Old GM," or the group of assets slated to be sold off or shut down in bankruptcy court.
06-29-09, 07:12 PM
#4
Lexus Fanatic
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I found more info at autoblog.com
As part of its "New GM"/"Old GM" bankruptcy proceedings, General Motors has announced that it will abandon its ownership stake in the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota.
According to an official statement, GM and Toyota worked to find a future product that would work for both automakers, but they were apparently unable to do so. As a result, GM will assign its NUMMI stake to "Old GM," effectively ending a 25-year partnership with the Japanese automaker.
Over the last quarter-century, the Fremont, California plant has produced a number of vehicles for GM, including the current Pontiac Vibe, as well as the Geo/Chevrolet Prizm, and the Bowtie'd Nova that preceded it.
There is no word on what (if any) effect the deal's collapse will have on Toyota's NUMMI-made products which include the Tacoma pickup and Corolla sedan. According to NUMMI's official website, 5,440 workers are employed at the plant. Official press release after the jump. Thanks to everyone for the tips!
[Source: General Motors; NUMMI | Image: Hokubei]
PRESS RELEASE:
2009-06-29
GM Media Statement Regarding GM's Ownership Stake in NUMMI
Attributable to Troy Clarke, president, GM North America
"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 Toyotawill not be a part of the 'New GM'. 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.Given that, GM believes it is in the best interest of the 'New GM' and its stakeholders that we placeour 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 tofuture opportunities of mutual interest."
As part of its "New GM"/"Old GM" bankruptcy proceedings, General Motors has announced that it will abandon its ownership stake in the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota.
According to an official statement, GM and Toyota worked to find a future product that would work for both automakers, but they were apparently unable to do so. As a result, GM will assign its NUMMI stake to "Old GM," effectively ending a 25-year partnership with the Japanese automaker.
Over the last quarter-century, the Fremont, California plant has produced a number of vehicles for GM, including the current Pontiac Vibe, as well as the Geo/Chevrolet Prizm, and the Bowtie'd Nova that preceded it.
There is no word on what (if any) effect the deal's collapse will have on Toyota's NUMMI-made products which include the Tacoma pickup and Corolla sedan. According to NUMMI's official website, 5,440 workers are employed at the plant. Official press release after the jump. Thanks to everyone for the tips!
[Source: General Motors; NUMMI | Image: Hokubei]
PRESS RELEASE:
2009-06-29
GM Media Statement Regarding GM's Ownership Stake in NUMMI
Attributable to Troy Clarke, president, GM North America
"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 Toyotawill not be a part of the 'New GM'. 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.Given that, GM believes it is in the best interest of the 'New GM' and its stakeholders that we placeour 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 tofuture opportunities of mutual interest."
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