Toyota’s involvement with the joint-venture New United Motor Manufacturing Inc. production plant came into question after General Motors put its 50 percent share of the factory into the ‘Old GM’, but NUMMI’s fate appears to be sealed as reports out of Japan say Toyota will abandon the Fremont, California production plant.
According to the Associated Press, Toyota will liquidate its remaining stake in the NUMMI plant. Toyota is set to kick off negotiations with the Old GM – which is still in Chapter 11 bankruptcy under the name Motors Liquidation Co. — sometime next week.
Toyota has been jointly running the NUMMI plant with GM since 1984, but GM’s use for the plant ran out earlier this year when it announced it would be winding down the Pontiac brand. The Pontiac Vibe – set to go out of production next month – is the only GM vehicle currently built at the NUMMI plant.
In addition to the Vibe, the NUMMI plant also produces the Toyota Corolla, Matrix and Tacoma.
Aside from GM’s departure, high labor costs and excess U.S. capacity have also conspired against the NUMMI plant. Because of GM’s involvement, the NUMMI plant was staffed by UAW members, resulting in hourly labor costs that were typically $8 to $13 more per worker than Toyota paid at its other North American plants. Toyota also has a completed and unused plant waiting in Tupelo, Mississippi.
No word on when the NUMMI plant will officially close its doors, but it could come as soon as next month. The UAW’s contract with the NUMMI plant is set to expire in August.
