Toyota May Follow GM Out of NUMMI
Japanese car maker considers dissolving its stake in the East Bay plant
Saturday, Jul 11, 2009 | Updated 9:53 AM PST
Toyota may end its share in the Fremont plant.
Toyota Motor Co. says it is considering dissolving its stake in an East Bay manufacturing plant after General Motors Corp. pulled out of the joint venture.
A Toyota spokeswoman declined to comment on whether the Japanese automaker would close New United Motor Manufacturing Co., or NUMMI or explore other options. GM announced last month that it planned to liquidate its stake in the 50-50 joint venture and on Friday the American car maker emerged from bankruptcy.
"GM's decision to abandon NUMMI and discontinue its production of the Pontiac Vibe have prompted a set of difficult and complex decisions for Toyota," the Japan-based automaker said in a prepared release.
The Fremont, Calif., factory makes the Pontiac Vibe station wagon for GM and the Corolla compact car and Tacoma pickup truck for Toyota. But GM shed Pontiac while under bankruptcy protection and the factory will stop building the Vibe in August.
Toyota said it will examine whether it is financially feasible to continue its NUMMI operations.
The joint venture was launched in 1984. The factory employs about 4,600 workers but a closure could heavily impact neighboring Fremont businesses and several suppliers.
Copyright Associated Press / NBC Bay Area
Posted Friday, Jul 17, 2009 - 11:27 AM PST
