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AutoBlog: After 25 years, GM ditches NUMMI tie-up with Toyota

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Filed under: Plants/Manufacturing, GM, Pontiac, Toyota

nummi_optab.jpg

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]

Continue reading After 25 years, GM ditches NUMMI tie-up with Toyota

After 25 years, GM ditches NUMMI tie-up with Toyota originally appeared on Autoblog on Mon, 29 Jun 2009 15:58:00 EST. Please see our terms for use of feeds.

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...as camino said...they should have done this a long time ago...

Chris

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This was only 24 years too late.

The good part is Toyota will get more open capacity right when they really don't need it.

Edited by hyperv6
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Good news.
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So, will some other manufacturer hop in in order to learn the "Toyota Way" (in spite of the hypocrisy within Toyota when it comes to their lean practices, which are hit & miss in recent years from my viewpoint), or will this simply become a Toyota plant, or will it shut down? I doubt the last one will be the case, though crazy things are happening these days. It's going to be interesting to watch, as is this whole auto industry (and overall economy) shakeout...

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I guess if they had continued the partnership they could have built a Chevy version of the Tacoma...it would make a better Colorado.

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It's about time.

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I wonder what GM took away from the joint venture, how it benefited them.

They did it so they could learn Toyota's production methods. Toyota wanted a plant in the US, and GM had horribly inefficient and inflexible factories, so it benefited both companies, at least for a little while.

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They did it so they could learn Toyota's production methods. Toyota wanted a plant in the US, and GM had horribly inefficient and inflexible factories, so it benefited both companies, at least for a little while.

That's what I figured, too bad they didn't learn about quality assembly and interiors sooner as well.

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I find it a little sad, as this marks the end of GM vehicle production in California, though most people would say they weren't real GM vehicles to begin with. I remember when the Van Nuys plant lost production of the F-bodies to Canada in the early 90s.

The future of the Fremont plant is really in doubt now. There was a rumor last week that Prius production would occur there, but that was just wishful thinking.

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Interesting :)

[source: Inside Line]

Toyota Says GM Decision to Bail Out of NUMMI Is "Difficult"

DETROIT — General Motors on Monday announced that it is abandoning its 25-year NUMMI joint venture with Toyota, saying that "there are no future GM vehicles planned at this time." Toyota responded by saying "this decision by GM makes the (economic) situation even more difficult for Toyota."

Earlier this month GM said that it would end production of the Pontiac Vibe at the Fremont, California NUMMI plant in August. Toyota currently builds the Tacoma pickup and the Corolla on two lines at NUMMI.

"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 part of the 'New' GM," GM 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."

Toyota spokesman Mike Goss told Inside Line on Monday that he couldn't answer any questions about whether the automaker was actively seeking new partners for NUMMI or what sorts of future products will be built there. Bloomberg on Monday said Toyota may offer a GM version of its hybrid Prius sedan, one of the options to fill unused NUMMI capacity.

"Toyota Motor Corporation is sorry that General Motors has chosen to withdraw from the NUMMI joint venture, ending a long, successful partnership spanning 25 years," Toyota said in a statement. "Our hope was for the 50/50 joint venture to continue. While we respect this decision by GM, the economic and business environment surrounding Toyota is also extremely severe, and so this decision by GM makes the situation even more difficult for Toyota.

"We will consider alternatives by taking into account various factors."

A NUMMI fact sheet said the plant has an annual volume of about 250,000 cars and about 170,000 trucks. It employs more than 5,000 workers.

Inside Line says: It's the end of the line for a high-profile joint venture between two global rivals. — Anita Lienert, Correspondent

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I find it a little sad, as this marks the end of GM vehicle production in California, though most people would say they weren't real GM vehicles to begin with. I remember when the Van Nuys plant lost production of the F-bodies to Canada in the early 90s.

The future of the Fremont plant is really in doubt now. There was a rumor last week that Prius production would occur there, but that was just wishful thinking.

with all the cars that are sold in california, you'd think they'd put plants there. But California's high cost and the fact that they seemingly are against the automakers with all the legislation is probably why the automakers didn't put more plants there. Maybe GM FOrd etc would sell more cars in CA if they set up some plants there.

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While it is always sad when Americans lose jobs,

I am 100% in favor of the NUMMI plant & every

thing it stands for being scrapped.

I'm not a fan of "sleeping with the enemy"

Finally, it's about time they ditched it.

Spoken like a true Prizm owner. :)

Edited by Sixty8panther
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This is total crap. Pontiac's best made product came out of this plant.

Oh well, hopefully Toyota pulls out too so that one of the many California based green-car manufacturers can move in.

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This is total crap. Pontiac's best made product came out of this plant.

You're joking, right? I don't think I've seen a single positive Vibe review. And the Geo/Chevy Prizm wasn't anything to write home about, either.

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