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NUMMI not part of “New GM”

A General Motors (GM) press release yesterday, June 29, 2009 stated, in part:

“As part of its long-term viability plan, General Motors has decided that its ownership stake in the New United Motor Manufacturing Incorporated (NUMMI) joint venture with Toyota will not be a part of the ‘New GM’. After extensive analysis, GM and Toyota could not reach an agreement on a future product plan that made sense for all parties. Accordingly, NUMMI will end production of vehicles for GM in August, and there are no future GM vehicles planned for the joint venture at this time.”

What the announcement means for Bay Area autoworkers at the NUMMI plant in Fremont seems unclear today.

The “New GM” is, in fact, owned mostly by the government, after GM declared bankruptcy. Most Americans disapproved (in a Gallup poll) of the majority government ownership of GM, which some say now stands for “Government Motors.”

Hopefully, the Toyota half of the NUMMI partnership may have something to say about the resources in Fremont.

Also, Tesla Motors plans to use the majority of a recent $465 million government loan to build production facilities for their Model S electric sedan. A production facility is planned for the Bay Area.

-Bill at Cheshire Cat Photo™

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