Toyota May Dissolve its Stake in California Plant

Toyota May Dissolve its Stake in California Plant

Toyota Motor Co., the world's largest automaker, said it would consider dissolving its stake in a California manufacturing plant after General Motors Corp. pulled out of the venture.

Referring to the plant known as NUMMI (New United Motor Manufacturing Inc.), Toyota said, "Under the current business circumstances, Toyota regrettably must also consider taking necessary steps to dissolve the joint venture."

It may be noted here that NUMMI remained an unprofitable venture since 1984 when the partnership was established.

The northern California auto plant, which builds the Corolla sedan and the Tacoma compact pickup truck for Toyota, provide work for approximately 5,000 workers.

Previously Toyota had expressed its intention to carry on the joint venture and said that it was disappointed over GM's decision to leave the venture.

The 53-year old Akio Toyoda, who took over the company as President last month had said he would not shutter any plants in spite of adverse economic conditions.