Posted: 7/23/2009 9:11:24 AM EDT
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http://www.mercurynews.com/ci_12898638?source=rss&nclick_check=1 Associated Press Posted: 07/23/2009 08:46:36 AM PDT Updated: 07/23/2009 09:23:00 AM PDT Toyota Motor Corp. has decided to liquidate its stake in a California manufacturing plant that it jointly operated with General Motors, a Japanese news agency reported Thursday. The Japanese carmaker will begin negotiating with the "Old GM" starting next week, Kyodo News reported, citing unnamed company officials. Toyota spokesman Mike Goss would not confirm that the Japanese automaker had made a final decision on the fate of Fremont, California-based New United Motor Manufacturing Inc., also known as NUMMI. Goss said Toyota will begin negotiations with the GM officials about the plant and added that the company is conducting an "extensive review" of its production needs. No one wants to be a part of Government Motors! Kudos to the Japs for seeing the danger.  |
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Toyota ditching its only UAW facility? Good for Toyota, and good for America. Every fewer UAW member that funnels money to democrats is good for freedom. There is much truth in this. IIRC GM bailed on the deal and left Toyota holding the bag on this plant, good on them for kicking it to the curb. |
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Toyota only manufactures one GM product at NUMMI, the Pontiac Vibe. Since Pontiac is going away, this operation would no longer be a joint venture. They also build Corollas and Tacomas there.
I would wager that Toyota liquidates the joint venture, but keeps the factory open as a straight Toyota operation. They have a strong tendency to not close facilities since they consider the people who understand the Toyota Production System to be their most important asset. On the other hand, the fact that it is their only UAW organized facility may cause them to close it completely. Only time will tell. |
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Toyota only manufactures one GM product at NUMMI, the Pontiac Vibe. Since Pontiac is going away, this operation would no longer be a joint venture. They also build Corollas and Tacomas there. I would wager that Toyota liquidates the joint venture, but keeps the factory open as a straight Toyota operation. They have a strong tendency to not close facilities since they consider the people who understand the Toyota Production System to be their most important asset. On the other hand, the fact that it is their only UAW organized facility may cause them to close it completely. Only time will tell. I think California has taxed this particular employer right into a neighboring state. 
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Toyota only manufactures one GM product at NUMMI, the Pontiac Vibe. Since Pontiac is going away, this operation would no longer be a joint venture. They also build Corollas and Tacomas there. I would wager that Toyota liquidates the joint venture, but keeps the factory open as a straight Toyota operation. They have a strong tendency to not close facilities since they consider the people who understand the Toyota Production System to be their most important asset. On the other hand, the fact that it is their only UAW organized facility may cause them to close it completely. Only time will tell. I think California has taxed this particular employer right into a neighboring state. The last time I toured NUMMI the management team stated that it was a profitable operation. <shrug> We'll see. |
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Toyota only manufactures one GM product at NUMMI, the Pontiac Vibe. Since Pontiac is going away, this operation would no longer be a joint venture. They also build Corollas and Tacomas there. I would wager that Toyota liquidates the joint venture, but keeps the factory open as a straight Toyota operation. They have a strong tendency to not close facilities since they consider the people who understand the Toyota Production System to be their most important asset. On the other hand, the fact that it is their only UAW organized facility may cause them to close it completely. Only time will tell. I think California has taxed this particular employer right into a neighboring state. The last time I toured NUMMI the management team stated that it was a profitable operation. <shrug> We'll see. Fairly recent articles, to the best of my recollection, indicated otherwise. I'll see if I can find the thread. |
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Ah yes...
<blah blah blah> Toyota is considering closing the California vehicle-assembly plant, above, that it has operated jointly with GM. Nummi has mostly been a money-losing operation since GM and Toyota established the partnership in 1984. <blah blah blah> Because of its location in the San Francisco Bay area, the 4,600-worker Nummi facility is a high-cost plant for the Japanese auto maker. <blah blah blah> Management blowing smoke, perhaps? Anyways, Source. ETA: Also... Quoted:
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What ever possessed them to build in the San Francisco Bay area to begin with? High Cost of Labor. Check High Cost of Regulation. Check Minimal Existing Automotive Infrastructure. Check What's not to love? http://www.bloomberg.com/apps/news?pid=20601101&sid=aBqdS0rEdh4I "Nummi made money only in 1992, the result of California’s taxes on business and strict labor and pollution rules, as well as the plant’s UAW contracts, according to an estimate by Tokyo- based Credit Suisse analyst Koji Endo." I realized that NUMMI was not as profitable as other auto plants in the US, but to lose money 24 years out of 25 years in existence? Yikes. |