Japanese manufacturer Toyota, who operates the NUMMI joint venture (New United Motor Manufacturing) with GM in California, is now considering a buy-out of the respective GM asset. The news was confirmed by Toyota president Katsuaki Watanabe, who said he hopes to preserve the 25 year long partnership, Autonews reported.
On the other hand, GM has not yet made up its mind what to do with NUMMI. The manufacturer no loger needs the facility, as the Pontiac Vibe which was produced there was discontinued. Even more, Fritz Henderson says that already the NUMMI partnership produces some 80 percent of its output for Toyota.
The sure thing is that GM will pull out of NUMMI. This will leave Toyota with only two choices: "We can continue by taking over GM's share or quit the California production project," as Toyota spokesman Hideaki Homma told the source. He added that up until now, GM has made no proposal on how this should play out.
According to analysts, Toyota does need more US based production facilities, in the prospect of the market recovery. More than 40 percent of the cars sold in the US last year had to be imported, making the manufacturer loose money in exchange rates.
As for GM's bankruptcy, the Japanese manufacturer expressed its support by saying: "We hope that this development will stabilize General Motors' business and lead to the competitive health of the entire industry."
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