GM Exits NUMMI JV with Toyota
30 June 2009
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.
That is a shame, because the Matrix/Vibe has been successful. It is a Corolla/RAV4 platform that has AWD and is affordable. I kind of hope that Toyota continues it, but maybe they will not. They tried to give the whole thing to GM, but this says that did not work. Oh well, so much for cooperative efforts that succeed.
Posted by: SJC | 30 June 2009 at 10:11 AM
I agree with SJC...but desperate times for GM are calling for desperate measures, and there's probably little more for GM to learn & profit from with the JV. What's more important for GM is to get the NUMMI assetts off their books - luckily a lot of the jobs should remain there.
Posted by: ejj | 02 July 2009 at 11:49 AM