GM is dumping its share of the joint-venture New United Motor Manufacturing Inc. (or NUMMI), which GM and Toyota have operated together since 1984, although the plant dates from the 1960s. The venture was already split 60% toward Toyota parts production, and now GM and Toyota have become unable to agree on any future GM products to be produced at NUMMI. Thus, GM’s ownership stake will be left in “Old GM,” essentially abandoning the plant to Toyota. This will leave Toyota with a union plant in their group of mostly non-union American manufacturing facilities. We’ll keep you posted about what Toyota’s plans for the facility are. Press release after the jump.
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 Toyota will 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 place our 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 to future opportunities of mutual interest.”