Toyota to liquidate joint production plant with GM in California+

NAGOYA, July 23 Kyodo -
Toyota Motor Corp. is set to liquidate a joint car manufacturing venture with
General Motors Corp. in California in view of a prolonged downturn in the U.S.
auto market, company officials said Thursday.

Toyota will begin talks for withdrawal with GM next week, they added. They hope
to reach a decision by the end of August on details including how to liquidate
the joint plant.
The Japanese automaker was previously considering whether to continue alone the
25-year-old joint venture plant, called New United Motor Manufacturing Inc.,
after the bankrupt GM recently announced withdrawal as part of its
restructuring program.
But earlier this month, Toyota announced it was considering liquidating the
plant on the same day that a new and leaner GM emerged from Chapter 11
protection with the sale of its core profitable assets.
Toyota plans to discuss with the GM side how to divide the liabilities after it
calculates the asset value of NUMMI and the costs of shutting down the plant,
the officials said.
The world's top automaker reached the decision to withdraw in view of the
excess production capacity in the United States due to slumping car sales and
the aging facilities of the California plant.
NUMMI was a beachhead for Toyota's entry into the U.S. market and emerged at
the height of frictions between the U.S. and Japanese auto industries.
==Kyodo
2009-07-23 21: