Last month we learned that GM would be ending its joint venture, New United Motor Manufacturing Inc., with Toyota. Toyota is now going to begin discussions towards dissolving the venture with the “Old GM.” Toyota has been examining the US market after auto sales have been on the down side. Toyota is carefully looking at their options for NUMMI.

Toyota has said that the labor costs are not competitive with other plants in the U.S. such as Georgetown, Kentucky. The UAW has said that part of the reason for the joint venture was to have American employees learn Toyota’s methods of production, which are more efficient.

California represents Toyota’s largest market in the United States. California senators and House members are communicating with Toyota to see is they can keep the plant from closing.

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Mr. Bryan Nesbitt has been named as the general manager of Cadillac. Mr. Nesbitt has been the vice president of G.M. North America Design. He was hired by Chrysler in 1994 and helped in designing the PT Cruiser. He arrived at G.M. in 2001 and was in charge of Chevrolet design. He was then put in charge of G.M. design in Europe, supervising the Saab 9-X concept and the Opel Insignia. Mr. Nesbitt was later made executive director in design for G.M. North American brands. In 2007 he was instrumental in the introduction of the Pontiac Solstice and the Chevy Malibu.

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Ron Bloom, head of the automotive task force for President Obama, is very concerned. Members of Congress are looking into reversing the closing of thousands of Chrysler and General Motors dealerships. Mr. Bloom says that could threaten the manufacturer’s bankruptcies. The Chrysler dealerships already closed on June 9, 2009 and the General Motors dealership will be closing in October 2010.

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General Motor’s has a hit with its new Camaro. The latest edition is a reminder of the old Camaro’s in its heyday. With its long hood and lots of grill it’s bringing people back to the showrooms. The basic model has a 6 cylinder engine and is priced well. The Camaro made its debut in 1966 and was dropped from the lineup in 2002. GM sold 9,300 Camaros during the month of June and actually outsold its rival, the Ford Mustang that month.

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The targa-top Pontiac Solstice will be the last of the Pontiacs and after only a few months of production. Pontiac is scheduled to close production in 2010 and the Solstice coupe will be the last of Pontiac’s new models. With total production of only approximately 1,100 units when operations will end at the Wilmington plant in the end of July, the Solstice may become a collectors item. The coupes will be numbered sequentially so that it will be easy to determine which exactly of the 1,100 cars a collector may own. The GXP version has a sticker price of $31,000 and comes with a 4-cylinder 260 hp engine. One reviewer extolled the beautiful exterior but was disappointed by its relatively plain interior and by the relatively small size cockpit. He was further disappointed by the lack of convenient storage spaces in the passenger compartment and small luggage area. The reviewer also complained about the layout of the dashboard instruments and the wind and road noise. Despite its many faults, that particular reviewer found it to be a sexy little car designed by one of General Motors’ top designers who has subsequently left and is now employed by Tesla. The Solstice GXP seems to be a lot of sizzle but very little steak.

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While sales in June fell by 33% for General Motors, and 42% for Chrysler, Ford Motor Company announced that its sales were only down 11% from June, 2008. Ford also outsold Toyota and is regaining market share for the third consecutive month, and is discounting its vehicles less than General Motors and Chrysler. Ford also stated that slow demand in the West and Southwest where the housing market has taken the worst beating, has dragged down the company’s overall sales, while sales in more than half of the remaining states were on a par or slightly greater than last year’s. Further adding to General Motors and Chrysler’s woes were that plant closings sharply reduced sales to car rental companies and other business customers. On the bright side, however, their bankruptcies have not deterred sales to consumers as much as was expected

Asian automakers have also felt the impact of the economic slowdown with declines in sales of 32% for Toyota and 23% for Nissan. Overall automotive sales in the United States fell by 28% compared to June 2008, which though still a decline is the smallest decline since September of last year. Average annual sales throughout the United States for the last decade were about 17 million units but took a nosedive starting the second half of 2008. Thus far in 2009 slightly under 5 million vehicles have been sold, a decrease of approximately 37%.

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After 25 years General Motors has ended its joint with Toyota at its plant in Fremont, California. The project, known as the New United Motor Manufacturing Inc., or Nummi, has manufactured more than 6 million vehicles, including the Corolla sedan and Tacoma pickup truck for Toyota, and the Pontiac Vibe for GM. GM will no longer be producing Pontiacs next year and intends to discontinue the Vibe in August. GM also announced that it did not intend to continue utilizing the Fremont facility after it emerges from bankruptcy, which is expected to occur in late summer, 2009. The venture allowed Toyota to apply its system in the United States and enabled GM to learn from the Toyota manufacturing process. The plant, which has over 4,700 employees, and has more than 5,000,000 square feet of assembly space is the last auto plant operating in California. Toyota has not yet decided whether it will continue to operate in the Fremont facility, and has rejected reports that it was considering building the Prius in Fremont. Both the Corolla and the Tacoma are being assembled and other facilities, the Corolla in Canada and the Tacoma in Mexico.

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Under a plan proposed by General Motors and the federal government GM will assume responsibility for future product liability claims filed after the new GM company emerges from bankruptcy. More than a dozen state attorneys general have voiced objections to GM’s plan to sell off its desirable assets to a new corporate entity. These could have upset GM’s plan for rapid completion of the bankruptcy process.

This decision will resolve the potential problem of whether customers who have claims regarding their existing GM products, but who have not yet filed lawsuits, can sue GM in state courts. Bankruptcy case law is unclear on this issue, therefore GM and the government’s auto task force chose to assume the liability rather than risk a possible delay in emerging as a new company.

Previously filed product liability lawsuits may be left behind to be handled by the old GM thereby allowing the new GM to emerge with a clean legal slate. Because of its large size, however, GM has instead chosen to assume the legal liability. Last year GM had budgeted more than $900 million for product lawsuits. A committee representing numerous consumer plaintiffs claims to represent $1.25 billion in potential personal injury claims and has objected to GM’s plan to leave such cases with the old GM.

In the meantime, GM has continued to process lemon law claims from California consumers, and presumably those of other states, and honor its obligations to such consumers under existing state lemon law statutes.