General Motors, which is expecting to complete its bankruptcy trip by August, has said that its 50 percent stake in New United Motor Manufacturing Incorporated (NUMMI) with Toyota Motor Corp. will be left behind with other bad assets on their way to liquidations.
GM and Toyota jointly produced the Toyota Corolla and the Pontiac Vibe at NUMMI. The Pontiac Vibe will end production in August.
GM’s Statement Regarding GM’s Ownership Stake in NUMMI:
“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 tofuture opportunities of mutual interest.”
– By: Omar Rana