Toyota says shutdown of JV plant an option after GM withdrawal
TM | Quote | Chart | News | PowerRating -- Toyota Motor Corp. has begun studying whether to continue alone a car manufacturing plant in California after General Motors Corp. withdrew from the joint venture, company officials said Tuesday.
"A shutdown is an option," a senior Toyota official said. Toyota will reach a decision in July before the bankrupt U.S. auto giant ends production of the Pontiac Vibe small car at the plant by the end of August. As part of its restructuring plan, GM withdrew from the joint venture, called New United Motor Manufacturing Inc., which had been operating since 1984.
If Toyota decides to continue the plant, it will acquire all shares of the joint venture owned by GM.
But sources close to the matter said Japan's top automaker would be reluctant to go out of its way to continue operations as it combats excess supply capacity and heavy losses on the back of a shrinking auto market.
At the same time, executives of Toyota, which has never closed a plant either in Japan or overseas, are also cautious about pursuing the option since the company had worked to protect employment in order to avoid frictions with the United States, the sources said.
Toyota is expected to reach a decision after weighing both the concerns of the local community and economic rationality.
NUMMI has been a key part of Toyota's entry into the U.S. market and a passing point in the career paths of the company's chief executives including the current president, Akio Toyoda.
To see more of Kyodo News International, go to http://www.kyodonews.com
Copyright (c) 2009, Kyodo News International, Tokyo Distributed by
McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.
For full details on Toyota Motor Corporation ADS (TM) TM. Toyota Motor Corporation ADS (TM) has Short Term PowerRatings at TradingMarkets. Details on Toyota Motor Corporation ADS (TM) Short Term PowerRatings is available at This Link.
For full details on (GMCEQ) GMCEQ. (GMCEQ) has Short Term PowerRatings at TradingMarkets. Details on (GMCEQ) Short Term PowerRatings is available at This Link.
- Izard Nobel LLP Announces Class Action Lawsuit Against Toyota Motor Corporation - 02/09/10
- Zacks Bull and Bear of the Day Highlights: OPNET Technologies, Vulcan Materials, Toyota Motor, Xerox Corporation and Urban Outfi - 02/09/10
- Toyota dealers brace for impact - 02/09/10
- Toyota recalls 155,000 Prius and Lexus vehicles in U.S. - 02/09/10
- Law Offices Bernard M. Gross, P.C. Filed a Class Action Lawsuit Against Toyota Motor Corporation -- TM - 02/09/10
- More News >>
