DOW JONES NEWSWIRES
General Motors Corp. (GM) announced it will end its 25-year
manufacturing joint venture with Toyota Motor Corp. (TM) in
Fremont, Calif., saying the two companies couldn't come to an
agreement on what future product would be made at the facility.
The plant currently produces the Pontiac Vibe, which GM will
stop making within 60 days, and the Toyota Corolla.
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's future became uncertain as GM moved to shutter
plants 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.
Toyota had been accounting for nearly three-quarters of the
plant's output.
"We have enjoyed a very positive and beneficial partnership with
Toyota for the past 25 years, and we remain open to future
opportunities of mutual interest," said GM North America President
Troy Clarke.
GM's ownership interest in the venture will become joint assets
in the portion of GM being sold as part of bankruptcy
proceedings.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com
(Sharon Terlep contributed to this report.)