GM cuts Toyota ties in US joint venture

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DETROIT (Reuters) -- General Motors Corp. Monday cut its operational ties to a northern California auto plant it has operated in a joint-venture with Toyota Motor Corp. since 1983.

GM (GMGMQ), which has been operating in a U.S. government-sponsored bankruptcy since the start of the month, said it had been unable to reach an agreement with Toyota (TM) on a new production plan for the Fremont, Calif. plant.

"After extensive analysis, GM and Toyota could not reach an agreement on a future product plan that made sense for all parties," GM said in a written statement.

GM and Toyota have been 50-50 partners in the joint-venture plant commonly known by its acronym NUMMI for the New United Motor Manufacturing Inc.

The Pontiac Vibe -- the only GM vehicle built at the plant -- will go out of production in August. Toyota uses the plant to build the Corolla sedan and the Tacoma compact pickup truck.