The associated press is reporting that ‘New GM’ plans to emerge from Chapter 11 bankruptcy protection without its 25-year old California tie-up with Toyota. As we previously reported here in HHLE, GM and Toyota had been in discussions over a possible vehicle filler to replace the outgoing Pontiac Vibe in order to maintain the 50-50 ownership. In an official statement, GM said:
“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.
This came after 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. This essentially terminates the partnership as NUMMI assets will be dealt the same way as the negative equity assets in Bankruptcy court.
NUMMI might remain if the rumors released today in Bloomberg, about a possible shared Prius turn out to be true. Yet this seems unlikely, given the cost and production shift necessary to do so.
Check out Bloomberg for more news and possible changes