Toyota plans to end production at joint venture

WASHINGTON -- Toyota's board voted early Thursday to end the company's production contract at the Fremont, Calif., New United Motor Manufacturing Inc., spokeswoman Cindy Knight confirmed.

Toyota had said previously that it was moving toward liquidating its stake in the California facility after the plant's fate was thrown into question in June when GM announced it was withdrawing from the 50-50 joint venture. General Motors emerged from bankruptcy and the company's stake in NUMMI is now part of Motors Liquidation Co. — also known as Old GM — where it will be liquidated under court supervision.

The NUMMI plant, established in 1984, employs 4,600 workers. Toyota builds the Corolla compact car and the Tacoma pickup at the plant and until recently GM built the Pontiac Vibe station wagon there.

California lawmakers have discussed with Toyota a package of financial incentives to keep the plant open. The six month period before Toyota ends production gives the state time to find another automaker or manufacturer which may want to use the facility.

Japanese media outlets reported Wednesday that Toyota would slash worldwide capacity by 700,000 to 1 million vehicles and the NUMMI production was expected to be part of the global plan.

Knight declined further comment but said the company planned to provide additional details on the decision later Thursday.