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Report: Toyota to shoulder NUMMI closing costs alone

11/12/2009, 9:22 AM

By Andrew Ganz

The New United Motor Manufacturing Incorporated assembly plant in Fremont, California, might have begun life as a joint-venture between General Motors and Toyota, but reports out of California indicate that only the Japanese automaker will be covering the cost of closing the plant, including worker severance pay and environmental concerns.

The portion of the former General Motors that is still languishing in bankruptcy, Motors Liquidation Corporation, says it is not planning to help out at all with the costs involved in closing the plant. GM has officially stopped producing the Pontiac Vibe at the facility, leaving Toyota as its sole occupier until the automaker moves out by March of next year.

Tim Yost, a spokesman for Motors Liquidation, told the Detroit News, “We don’t believe there will be a requirement for us to do so.”

GM abandoned the plant in June, leaving Toyota hanging. The Japanese automaker decided about a month later that it would also stop using the facility. The plant employed about 4,700 workers, meaning severance costs will climb well into the hundreds of thousands of dollars according to analysts at Maryann Keller & Associates. In addition, the firm says that numerous environmental issues, required by both California and the federal government, will need to be addressed before the plant can officially be shuttered.

“This is an old factory, built when rules were quite different,” Maryann Keller said. “Who knows what kind of environmental issues will have to be resolved?”

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11/12, 9:29 AM

posted by:

vicdub85

It’s kind of like paying for your buddies meal cause you know you make more money then he does.

11/12, 10:15 AM

posted by:

Zesty Honda

Actually this is the benefit of bankruptcy, some of you bills go unpaid.

11/12, 10:20 AM

posted by:

orangecones

GM is horrible for not contributing to this effort. As far as bribing the workers off, that is not necessary. Sure the Union might require it, but since its Toyota’s only UAW plant, who cares if they don’t. I’ve worked several jobs where my branch has been shuttered, and what did I get for it? Nothing. Perhaps if Toyota wants to do something, they could give some Yarises to the middle managers.

GM. ****ty Cars. ****tier Business Partner.

11/12, 10:38 AM

posted by:

carstuff

100’s of thousands for 4700 workers? Well that works out to $42 each ($200,000). I think they meant 100’s of millions.

The UAW has in the past gotten $1500 for every year worked up to $40k. A one year severance ($40k) would be $188 million.

11/12, 10:41 AM

posted by:

DenverGuy217

So where are all the NM***** imitators commenting “GM f—- over Toyota just like it does their own customers”? Come out come out wherever you are. You know you want to comment. Don’t be shy now

11/12, 10:43 AM

posted by:

johnnycanuck

They should turn it into a museum dedicated to some of the most boring cars ever produced in North America. Most of which came out of this plant.

11/12, 10:44 AM

posted by:

andy

i think its fair, ‘you touched it last’ has been around as long as i can remember in kindergarten classes

11/12, 10:44 AM

posted by:

Veda

Yeap, all I gotta say is that’s totally messed up. But business is business, if you can screw your competitor…

11/12, 11:20 AM

posted by:

05Z88Path

It’s like leaving dinner and letting the last person at the table foot the bill. Best decision I’ve heard GM make in the last several months! lol

11/12, 11:43 AM

posted by:

0-60

I don’t thing GM just left toyota hanging like the article says. It is business but something tells me GM didn’t leave toyota in the dark. They are partners in the plant, come on.
I said that to say this. I think it’s fair GM let toyota share that plant with them years ago when toyota wanted to learn how to build cars in the U.S. now toyota sells millions of cars here so the least they could do to thank GM for the help is pay for this.
just my thoughts.

11/12, 12:36 PM

posted by:

CiNO

Oh come on, I hate that. They were sharing benefit, they should share when they close. However, Good luck Toyota, I’m waiting for your 86 to come back.

11/12, 1:08 PM

posted by:

Need more oil for GM

Awesome. Awesome news!!!

Good to see Toyota punished for putting their plant to build POS runaway death machines on our shores! And fock those people who work there as well. Traitors! They deserve to lose their jobs for working for a foriegn company that steals our money!

Be American. buy American. Buy Gm. Do NOT buy Toyota or any other imports. It is unAmerican.

11/12, 2:35 PM

posted by:

ml350pc

There are no sure things in business!! GM filed for Bankruptcy protection so Toyota got left holding the bag. Thats the way is!!! Maybe the Japanese Government can help Toyota covers those costs so we don’t have to shed a tear for them.

11/12, 3:06 PM

posted by:

Need more oil for GM

F Toyota F japan and F all those scumbags who are accosiated with them. They don’t belong in this Country so get the fock out!

GM. AN American Revolution!

11/12, 3:19 PM

posted by:

leftwingagenda

**** trolls, **** gm, and **** you you god damn trolling scumbag mother****er, you don’t belong in this country, so please get the **** out…

leftwingagenda…an anti-trolling-mother****er-douchebag-****sucker-revolution!

11/12, 3:33 PM

posted by:

NMOFGMs Step Dad

Its okay leftwing,
i get the pleasure of pleasuring his mom all night, while he secretly faps to ford commercials.

11/12, 3:40 PM

posted by:

orangecones

@ 0-60. You got the story all wrong. NUMMI was open so that GM could learn how to use Kaizen in their manufacturing process. The fruit of these learnings of course came with Geo and Saturn (both now defunct because GM still doesn’t get what Kaizen means). So to follow your logic…. what actually happened is GM should say thanks and foot the bill, but instead like the retarded kid in class they are, simply left and put the burden on everyone else.

11/12, 4:04 PM

posted by:

iluvamcars

Orange, and others, if Toyota backed out of the plant the same day and time GM did, then GM, or not GM, LIQUIDATION MOTORS, THE PART IN BANKRUPCTY AND NOT THE NEW GM, would help with the costs. GM ditched and Toyota kept going so GM shouldn’t have to pay because Toyota kept it open after GM pulled out. It’s just like helping a friend start a business. If you back out of the business and your friend keeps it going for another three months then closes it, then why should you have to pay for expenses? Do you really think GM had the money to pay off expenses? They were going into bankruptcy for pete’s sake! Your comment is very childish and if you read the article clearly, you would understand the circumstnaces and why Toyota is only paying! Get it right or get off!

-iluvamcars

11/12, 4:07 PM

posted by:

Need more oil for GM

GM owes nothing to Toyoduh and therefore f*ck em, they get what they deserve. GM is better off without them.

GM. AN American Revolution

11/12, 4:09 PM

posted by:

Need more oil for GM

Let Toyoduh pay for it with the blood money that dip**** Americans have sent to their sh1tty Country for all these years.

There are only two auto manufacturers, GM and everybody else…

11/12, 5:13 PM

posted by:

superman

0-60: “..toyota wanted to learn how to build cars in the U.S. (from GM)”…

first let me chuckle. ok. now, your lack of credibility and knowledge has been obvious in other posts so i’ll fix your mis-statement here. it’s GM that wanted to learn Toyota’s ‘lean manufacturing’ system and apply it to their plants to make them run more efficiently. many many other corporations have incorporated, or at least tried to incorporate/imitate, the kaizen method into their production lines, supply chains, etc. unfortunately, many of them haven’t been able to apply and use it as well as toyota has and gm is one of those corporations. do some research before posting.

11/12, 5:18 PM

posted by:

superman

johnny, with that logic, should we turn ur mom into a toxic waste plant since you came outa there?

11/12, 5:40 PM

posted by:

0-60

ALL HAIL superman the most educated man on the planet when it comes to GM and toyota’s business.
We should all wish to be as smart as him one day.
Thank you superman I never thought I would ever read something on an internet blogs site that would change my life.
I’m in your debt for life.

11/12, 7:11 PM

posted by:

superman

your welcome little one.

11/12, 7:29 PM

posted by:

Borat

Lefty, what a language!? I am f*cken ashamed for you!

11/12, 7:54 PM

posted by:

DrFill

This story is fully coded
Read between the lines

GM is too broke, and too apathetic, to pay what they owe American workers
Toyota will live up to their responsibilities, both to the people employed, and the environment
Some newly-unemployed workers will have a Merry X-Mas
Thank you, Toyota!

Your welcome!
DrFill

11/12, 8:12 PM

posted by:

bailout

Typical GM……. they “will not” make it….. the Germans will take care of them….. They have a master plan and it is to eliminate all inferior auto makers starting with the weakest AKA GM. All hail the chief….. Take e’m down…. The Japanes our your allies….. we support you.

11/12, 10:19 PM

posted by:

johnnycanuck

For some reason I always seem to get sh*t on when I slag this plant. superman, do you have a Geo Prizm rusting out there behind the supersinglewide?

11/12, 10:30 PM

posted by:

NO more oil for GM is retarded

Bunch of backstabbers. Can’t trust garbage motors to have your back. Opel, Toyota the American taxpayers.
Sorry bunch of sobs.
Support your imports, don’t support the bailout companies like garbage motors and chrysler.

11/12, 10:47 PM

posted by:

aggie531

Kudos to Toyota. You know NMOFGM, you remind me of this jerkish child back in the 7th grade. He would wipe ketchup on my 25$ shirt and ruin it and when I told him to pay me back all he said fúck you. Way to be mature.

Bailout –

Is this some sort of automotive World War 2?

11/13, 12:25 PM

posted by:

ajm11

NO more oil for GM is retarded – By your comment do you actually believe that Toyota not get bailed out by the Japanese government? Toyota is in the same boat as the other manufacturers. They were bailed out as well.

11/13, 2:38 PM

posted by:

steve333

Some folks just can’t read. GM gave up the Plant and Toyota took it over. They then later decided to close it so they get to pay all the costs involved in closing it.
As they say in Russia:
Tough ****zky!

 
 
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