General Motors Corp. (GMGMQ) said Thursday it will end production of the Pontiac Vibe wagon at the end of August, the first casualty of the auto maker's decision to shut down the brand.

The decision comes as GM and Toyota Motors Corp. (TM) negotiate the future of a factory in Freemont, Calif., where the auto makers have built vehicles together - including the Vibe and similar Toyota Matrix - since 1984.

"While no replacement for Vibe production has been determined, GM and Toyota remain in active discussions regarding potential future production," GM said in a statement Thursday.

For GM, the joint venture was an opportunity to see first-hand Toyota's revolutionary system of lean manufacturing, streamlined business practices that have since been widely adopted throughout the world. Toyota, then considering whether to begin producing vehicles in North America, wanted an opportunity to test its production system on a U.S. workforce.

The factory has produced many vehicles over the years, from the Toyota Corolla to the Chevrolet Nova. But the factory's future became uncertain as GM moved to shutter factories and cut out all but the most essential functions as it raced to restructure under government watch. Pontiac is among four brands GM is shedding in bankruptcy court and the only one that will be wound down rather than sold to another company.

Vibe sales are down 35% through May, less than the auto maker's overall 42% decline. GM's plans call for ending Pontiac by the end of 2010.

-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com.

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