Toyota says shutdown of JV plant an option after GM withdrawal

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NAGOYA, June 30 Kyodo -
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.
==Kyodo