Sep
2
Nummi, a joint venture between GM and Toyota Motor Corp., currently assembles the Prizms, Toyota Corolla cars and compact-size Toyota Tacoma pickup trucks at its plant in Fremont, Calif. Toyota’s products take most of the galvanized and cold-rolled steel used in Nummi’s products, steel industry sources said.
Although the Prizm and Corolla models are alike in most respects-including their size and component suppliers- GM has never been able to sell as many of the Prizms as Toyota has its Corollas. Many suppliers believe the Japanese-based automaker will simply boost its production of Corollas or add another vehicle to the Nummi product line when GM discontinues the Prizm.
GM executives have stated on a couple of occasions recently that the Prizm’s future after 2001 or 2002 is uncertain, confirming reports which surfaced during the strikes that virtually closed the automaker’s North American operations in June and July this year.
Although GM’s suppliers are concerned about the fate of the Prizm, they also are keeping an eye on the future status of another small car: the Chevy Metro that CAMI Automotive Inc. builds in Ingersoll, Ontario.
CAMI, a joint venture between GM and Suzuki Motor Corp. Ltd., also makes small cars for Suzuki and small sports utility vehicles for both companies, and GM has given some thought to taking the Metro-and perhaps the SUVs, also-out of production to make room there for the production of redesigned Cavalier models. If that happens, suppliers of parts and materials to the CAMI operations may change substantially.
Toyota buys most of the flat-rolled steel needed at its North American operations from a list of mill suppliers that includes AK Steel Co., Middletown, Ohio; Ispat Inland Inc., Chicago; LTV Steel Corp., Cleveland; National Steel Corp., Mishawaka, Ind.; Dofasco Inc., Hamilton, Ontario; and Stelco Inc., also of Hamilton.
