GM Ends NUMMI Joint Venture

After weeks of uncertainty regarding the future of the New United Motor Manufacturing (NUMMI) joint venture with Toyota, General Motors has finally decided to end the partnership, with the last vehicles to be rolled off the assembly lines in August. The US-based manufacturer said in a release the NUMMI deal won't be a part of the new GM, explaining the two partners could not reach an agreement on a potential car to replace the discontinued Pontiac Vibe.

"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,"
GM said in a release.

"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 placeour 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.”

Troy Clarke, GM's president of North American operations, said a few days ago that General Motors was still analyzing its options but emphasized that no agreement could be reached by that time.

"I'll just be honest with you: so far we have not figured out a product that fits the needs of NUMMI, Toyota nor ourselves," he said.

Today's decision leaves Toyota with only two options: either the company will takeover GM's share in the NUMMI joint venture and continue producing cars on its own or halts local production entirely. "We can continue by taking over GM's share or quit the California production project," Toyota spokesman Hideaki Homma said in early June.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories