GM to pull out of joint venture with Toyota at California plant

General Motors says it and Toyota can't agree on what vehicle to build at the NUMMI plant in Fremont. The move jeopardizes the future of the last vehicle assembly plant in California.
By Ken Bensinger and Julie Strack
June 30, 2009

Reporting from Los Angeles and Fremont, Calif. -- America's auto crisis has stretched beyond the Midwest all the way to California.

The state's last automobile plant is facing potential closure after General Motors Corp. said Monday that it would drop out of the joint venture with Toyota Motor Corp. that operates the factory and builds three vehicles there.

The troubled automaker will produce its final Pontiac Vibe at New United Motor Manufacturing Inc., or NUMMI, by the end of August. Whether Toyota plans to keep building its Corolla sedans and Tacoma small pickups at the Fremont, Calif., plant is still being decided.

The Japanese automaker has long resisted layoffs and closures. But given the high costs of manufacturing in California, the dearth of surrounding parts suppliers and the fact that the Northern California factory is Toyota's only unionized facility in the U.S., many experts worry that the company may follow GM's lead and exit the Golden State.

more:

http://www.latimes.com/business/la-fi-gm-nummi30-2009jun30,0,695539.story