Vector was formed in December 2000 through a joint venture agreement between General Motors (GM) and Menlo Worldwide, a subsidiary of Con-Way. Vector was created to provide planning and purchasing services for GM’s global supply chain. Under terms of the agreement, GM had the right to exercise a buyout of Vector. It has now exercised that right.
According to Con-Way, GM notified it that consistent with its turnaround plan and the goal of further integrating global activities, it had made the strategic decision to resume more direct control over its logistics functions.
As the Vector sale is completed, Con-Way will no longer receive any income from the joint venture. Stotlar says that the company will continue to pursue lead logistics provider or 4PL opportunities with the resources of Menlo Worldwide. However there is speculation that Menlo is weakened since just last year it sold its freight forwarding operations to UPS.
