Toyota to liquidate its stake in NUMMI, negotiations with GM begin next week

According to a report by Japan’s Kyodo News, Toyota has decided to liquidate its stake in New United Motor Manufacturing Inc (NUMMI) in California, a plant that it jointly operated with General Motors. Citing unnamed officials, Kyodo reported that Toyota will begin negotiating with the ‘Old GM’ starting next week.

Mike Goss, a Toyota spokesman, would not confirm the report but said that Toyota is conducting an “extensive review” of its production needs. A GM spokesperson was not immediately available for comment.

NUMMI’s fate came into question last month when GM announced that it will be withdrawing from the 50/50 joint venture that produces the Pontiac Vibe, Toyota Corolla and the Tacoma.

NUMMI employs some 4,600 workers. NUMMI said earlier this month that it is working hard to improve labor costs and make the Fremont, California facility more attractive to Toyota.

– By: Stephen Calogera

Source: Detroit News