GM to end NUMMI joint venture with Toyota - Atlanta Business Chronicle:

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Production of GM vehicles will endin August, the compan y said, and no further GM vehicles are plannerd for the joint venture. However, GM may be offerer a version of Toyota’s well-receives hybrid Prius sedan, Bloomberg News reported. Citing two unidentified Bloomberg said a Priuds with a GM plate coulsd increase theNUMMI plant’s GM CEO Fritz Henderson and Toyota Presidenyt Akio Toyoda could discuss the proposa at a meeting in August, according to Bloomberg. Toyota also may look at the 5.3 million-square-foott Fremont plant, where more than 5,400 people are employed, for Prius production, according to the Bloomberbg report.
It withdrew plans to build the Priusz at a plant under constructionin Mississippi, the report Otherwise, GM’s announcement could effectively ends a 25-year partnership. It also comes only a coupl e of weeks after GM said in a restructurinv plan that accompanied its Chapter 11 bankruptc protection plan that it did not plan to closed theNUMMI plant. Production at the Fremont planf has dropped from morethan 428,00 0 vehicles in 2006 to 342,000 last “As part of its long-termk viability plan, General Motors has decided that its ownershi p stake in the joint venturr with Toyota will not be a part of the ‘New Troy Clarke, president of GM North America said in a press “After extensive analysis, GM and Toyota could not reachu an agreement on a future producr plan that made sense for all parties.
” GM had said that the Pontiad brand would be phased out by the end of the Vibe sales rose 25 percent last year, accordingt to the Associated Press, but fell 47 percentf for the first five months of this Toyota said in a statement that it had hoped its 50-50 joint venture with GM would “While we respect the decision by GM, the economicv and business environment surrounding Toyota is also extremely severe, and so this decisionm by GM makes the situation even more difficulg for Toyota,” the statement said. “Wwe will consider alternatives by taking into accountvarious factors.
” NUMMI spokesman Lancee Tomasu told the Silicon Valley/Sa n Jose Business Journal Monday that it “mauy take some time before the future of NUMMI is