GM cuts ties with Toyota in US joint-venture

Published: 29 Jun 2009 17:26:43 PST

DETROIT, June 29 - General Motors Corp on Monday cut its operational ties to a northern California auto plant it has operated in a joint-venture with Toyota Motor Corp since 1983.

GM, which has been operating in a U.S. government-sponsored bankruptcy since the start of the month, said it had been unable to reach an agreement with Toyota on a new production plan for the Fremont, California plant.

"After extensive analysis, GM and Toyota could not reach an agreement on a future product plan that made sense for all parties," GM said in a written statement.

GM and Toyota have been 50-50 partners in the joint-venture plant commonly known by its acronym NUMMI for the New United Motor Manufacturing Inc.

The Pontiac Vibe -- the only GM vehicle built at the plant -- will go out of production in August. Toyota uses the plant to build the Corolla sedan and the Tacoma compact pickup truck.