After 25 years, GM ditches NUMMI tie-up with Toyota
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."
Reader Comments (Page 1 of 3)
Luis Salvatierra 4:09PM (6/29/2009)
It is a shame this is happening at NUMMI, I worked there for 4 years and there are lots of good people building those cars and trying to get the best quality.
Bye the way, the car in the picture is a Toyota Voltz. Same as the Vibe, but with the steering wheel in the right side.
I hope there is still hope for NUMMI, since they are making the Corolla and the Tacoma and once the economy picks up those cars are definitely going to sell as they did before.
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dukeisduke 4:56PM (6/29/2009)
When I first met my wife, she drove a '92 Corolla built at the NUMMI plant, and it was a great car. I still miss that car, and its gas mileage.
Richard S. 5:11PM (6/29/2009)
What is the Toyota Voltz? To which market is it exported? Also, the badge almost looks like a chrome Pontiac badge.
indijanac 5:24PM (6/29/2009)
Toyota Voltz is a rebadged Pontiac Vibe for the Japanese Market.
tankd0g 3:19AM (6/30/2009)
It is interesting that the Vibe, which I thought was the ugliest of the two, is the style they sell in Japan.
Throwback 4:12PM (6/29/2009)
This works for Toyota. Leave it in the old GM, and Toyota can buy out GM's share at rock bottom prices.
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Luis 4:13PM (6/29/2009)
I don't see why Toyota wouldn't just increase production of the Corolla/Matrix at NUMMI. When gas is $4/gallon again demand for those cars will skyrocket like it did last year.
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Luis Salvatierra 4:15PM (6/29/2009)
Absolutely Tocayo!!!! Otherwise they will have to move production of the Tacoma to either Mexico or San Antonio and the Corolla to Canada.
BigWill 6:26PM (6/29/2009)
FYI, they make the Matrix in Canada not at NUMMI. IMHO I'd like to see them make a US market Avensis at NUMMI.
Tool 4:15PM (6/29/2009)
The partnership ran its course. If GM was ever going to learn from Toyota (i.e. lean manufacturing) it probably has done so by this point.
GM needs to focus on kicking Toyota's butt as it emerges from C11. So if you are business partners, it is a little harder to do so.
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Tool 4:20PM (6/29/2009)
P.S. Toyota would be smart to transform NUMMI into a high-tech hybrid-only manufacturing plant. Since NUMMI is located in California, it would make sense from a marketing and operational standpoint, because it is the largest hybrid market.
Imagine being able to spec a customized Prius and having it delivered (or better picked-up at the plant itself) within 72 hours (or some other appropriate timeline). Kind of like how you can take a MacBook Pro and add add'l RAM or HD space if you are willing to wait an extra 2-3 days.
Rich 4:43PM (6/29/2009)
Yes, except for the bit about whybrids. And Apples.
MallardRider 4:27PM (6/29/2009)
The problem is that Toyota already has plants running under capacity elsewhere in NA.
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Chris 4:16PM (6/29/2009)
So is new GM ditching all North American building except where threatened by Democrats?
So, lets see, Canada and Mexico will be the money making lines and the politically correct cars from the states?
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buddy 4:29PM (6/29/2009)
Yeah...
GM was making so much money on Hummers, Surburbans, convertible saturns and rebadged Toyotas before the Government came in and ruined them.
I want the old GM back. You know - GM that made the SSR, the GM that was gonna import El Caminos from Australia. The GM that spent billions on niche vehicles that would never turn a profit but couldn't make a decent 4-door sedan.
This new Governemt Motors and all their efficient, modern, responsible, forward looking carmaking is just stupid.
I want an updated Aztek with a tent on the back!!
FThorn 4:28PM (6/29/2009)
Did they kick Canada out of North America?
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Rick C. 4:53PM (6/29/2009)
I wish they had once or twice. I went up there for a consulting job a few years back. The bimbo in the immigration booth made me pull a 30-day Canadian work permit for several hundred bucks. I was there for maybe 40 minutes, actually doing the engineering consulting. What happened to NAFTA? Like I was displacing some other engineer's job at the time...
Tony 10:29PM (6/29/2009)
We have always been "out of North America" by the Americans, even though Canada is a bigger part of North America than the U.S.
FThorn 8:14AM (6/30/2009)
Not true. You're just our nerdier, whiter cousin. :)
P.V. 4:37PM (6/29/2009)
That is in fact a Voltz, which is a rebadged Vibe. The Voltz was sold in Japan only, where, strangely enough, the original Matrix was not. That said, I think NUMMI was also used for such vehicles as the Toyota Cavalier (Japan only, sold as Toyota due to ridiculous import restrictions there), but I'm not sure about that one.
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