Toyota may drop US joint venture with GM

Toyota has been mulling options for the Fremont, California auto plant - commonly known by its acronym NUMMI for the New United Motor Manufacturing Inc - since GM cut operating ties to the plant in late June. GM and Toyota had been 50-50 partners in the northern California auto plant since 1984. "We need to determine whether it can be economically feasible to contract with NUMMI without GM," Toyota said in a statement. "Under the current business circumstances, Toyota regrettably must also consider taking necessary steps to dissolve the joint venture."

Toyota spokesman Steve Curtis said the automaker hoped to make a decision on NUMMI "as soon as possible." The news came as a new General Motors emerged from bankruptcy protection on Friday, by completing the sale of its best assets to a company funded by the US Treasury. The plant, which employees over 5,000 workers, builds the Corolla sedan and the Tacoma compact pickup truck for Toyota. The Pontiac Vibe - the only GM vehicle built at the plant - will go out of production in August under a previously announced plan by GM.

"NUMMI has been a model of U.S.-Japan industry collaboration as long as 25 years, but GM's decision to abandon NUMMI and discontinue its production of the Pontiac Vibe has prompted a set of difficult and complex decisions for Toyota," Toyota said. Toyota, which surpassed GM as the world's top automaker in 2008, previously said it wanted to keep the joint venture and expressed disappointment at GM's decision, and said it would consider whether to continue operating the plant on its own. GM and Toyota set up the joint venture 25 years ago when both sides had a clear stake in its success.

Opel purchase unlikely by mid-July

Canadian auto parts maker Magna is unlikely to meet its target of mid-July for taking over Opel from General Motors, a press report said Saturday, quoting a source in the economy ministry. Too many issues are still unresolved and "the likelihood of a contract being signed next week is extremely low", the daily Bild quoted its source as saying. Magna general director Siegried Wolf told Thursday's edition of the daily Rheinische Post, "We are aiming for the date of July 15 to present documents" that would seal a deal. "We are on the right path," Wolf added. In late May, Magna and GM signed a letter of intent concerning Opel under the aegis of the German government, which is to provide substantial financial support for the deal, but talks have occasionally stumbled since then. Last weekend, the head of GM Europe, Carl-Peter Forster, said Magna had a "considerable lead" on other bidders, including China's BAIC, and voiced optimism that an accord with the Canadian group, which is backed by Russian capital, would be reached by mid-July. Roland Koch, the regional premier of Hesse, the German state which will contribute to a bailout of Opel, also backs Magna against BAIC, which has made a concrete offer for Opel and its British unit Vauxhall.