General Motors will not retain its ownership stake in its New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota.
After extensive analysis, according to a statement issued by GM, the two companies 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 said, it believes it is in the best interest of the ‘New GM’ and its stakeholders to place the ownership interest in NUMMI in ’Old GM’.
NUMMI, when it opened in 1984, was the first automotive joint venture plant in the United States. NUMMI had produced the Toyota Corolla, Toyota Tacoma, and the Pontiac Vibe. As part of its long-term viability plan and recent decision to phase out the Pontiac brand, General Motors has decided to discontinue production of the Pontiac Vibe by the end of August 2009.