Toyota covering all the closure costs of NUMMI

Posted on Wednesday, 11 November 2009 , 19:11:24 byEmil

Filed under nummiclosureclosinggmcoststoyotaToyotaAsianGM

Toyota covering all the closure costs of NUMMI

Toyota announced already it will stop its joint venture with NUMMI on March 31, next year apparently the maker from Japan encounters a few bumps in the road in doing this. So, Bloomberg say Toyota will be forced paying all the venture closure GM costs as Motors Liquidation Corp., Detroit-based, that took over a few some assets right after the bankruptcy filing at GM, doesn't want to contribute.

Tim Yost, the spokesman of Motors Liquidation Corp. stated 'Motors Liquidation is not contributing at all to Nummi's closure costs. We don't believe there will be a requirement for us to do so'.

Venture spokesman - Lance Tomasu affirmed 'Neither GM nor MLC have contributed any funds toward Nummi's end-of-production costs. We do not know what the overall cost will be'.

In August, at the end, Toyota announced officially that it will be closing NUMMI on 31th of March, having production shifted to some other plants owned by this maker from Japan.

TMC vice president - Atsushi Niimi stated for the press 'After the decision by General Motors to withdraw from the NUMMI joint venture, Toyota conducted a thorough review of its alternatives in light of current and anticipated market conditions. Based on this review, we have determined that over the mid- to long-term, it just would not be economically viable to continue the production contract with NUMMI. This is most unfortunate, and we deeply regret having to take this action'.