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Monday, June 29, 2009

New GM Backs out of NUMMI Partnership with Toyota

Following the announcement on the termination of the Pontiac Vibe that was the last remaining project of the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota, the so-called 'New GM' said today that it plans to emerge from Chapter 11 bankruptcy protection without its 25-year old California tie-up with the Japanese automaker.

"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'," the company said in a prepared statement.

General Motors added that the two sides could not reach an agreement on a future product plan that "made sense for all parties" and that there are no future GM vehicles planned for the joint venture at this time.

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