GM: To Discontinue Production Of Pontiac Vibe
June 18 2009 - 3:47PM
Dow Jones News
General Motors Corp. (GMGMQ) said Thursday it will end
production of the Pontiac Vibe wagon at the end of August, the
first casualty of the auto maker's decision to shut down the
brand.
The decision comes as GM and Toyota Motors Corp. (TM) negotiate
the future of a factory in Freemont, Calif., where the auto makers
have built vehicles together - including the Vibe and similar
Toyota Matrix - since 1984.
"While no replacement for Vibe production has been determined,
GM and Toyota remain in active discussions regarding potential
future production," GM said in a statement Thursday.
For GM, the joint venture was an opportunity to see first-hand
Toyota's revolutionary system of lean manufacturing, streamlined
business practices that have since been widely adopted throughout
the world. Toyota, then considering whether to begin producing
vehicles in North America, wanted an opportunity to test its
production system on a U.S. workforce.
The factory has produced many vehicles over the years, from the
Toyota Corolla to the Chevrolet Nova. But the factory's future
became uncertain as GM moved to shutter factories and cut out all
but the most essential functions as it raced to restructure under
government watch. Pontiac is among four brands GM is shedding in
bankruptcy court and the only one that will be wound down rather
than sold to another company.
Vibe sales are down 35% through May, less than the auto maker's
overall 42% decline. GM's plans call for ending Pontiac by the end
of 2010.
-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com.
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