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GM in talks with Toyota on California auto plant
DETROIT, June 18 (Reuters) – General Motors Corp said on Thursday it is in talks with Japan’s Toyota Motor Corp (7203.T) about their California-based joint venture factory after the U.S. automaker decided to drop production of the Pontiac Vibe car there by the end of August.
GM’s plans for the factory known as the New United Motor Manufacturing Inc (NUMMI) — which builds Pontiac Vibe car, Toyota Corolla sedan and Toyota Tacoma compact pickup truck — came in focus after the automaker said it was phasing out the Pontiac brand.
GM (GMGMQ.PK) confirmed it was dropping the Vibe car as part of its restructuring efforts under court bankruptcy protection.
GM, which filed for bankruptcy on June 1, has also reached tentative deals to sell its Saab, Hummer and Saturn brands in recent weeks in an effort to dispose of unprofitable assets and leave bankruptcy as a leaner company.
GM Chief Executive Fritz Henderson said on Wednesday that no decision had been made as to the future of the joint venture plant with Toyota, the 5.3 million square feet plant in Fremont, California.
NUMMI, which is one of the few Toyota facilities represented by the United Auto Workers union, employs 5,440 people, according to its website.
Toyota President Katsuaki Watanabe has said he hopes to continue operations at NUMMI and would consider supporting GM if asked. (Reporting by Soyoung Kim and Poornima Gupta, editing by Leslie Gevirtz)
