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Toyota “carefully evaluating” operations at NUMMI plant

07/13/2009, 8:53 AM

By Drew Johnson

Following General Motors’ decision to abandon its joint-venture New United Motor Manufacturing Inc. production plant, Toyota says it may be forced to close the Fremont, California factory. GM and Toyota set up the joint-venture plant in 1984.

Despite its 25 year run as a Toyota plant, the Japanese automaker may have to shutter the NUMMI plant as a result of GM’s departure. “We are carefully evaluating our options with respect to the NUMMI joint venture as a result of General Motors’ actions,” Toyota said in a statement. “Under the current business circumstances, Toyota regrettably must also consider taking necessary steps to dissolve the joint venture.”

Toyota is also considering adding more model lines to the plant to keep it running, but says it needs to consider if it’s “economically feasible to contract with NUMMI without GM.”

One major strike against the NUMMI plant is its high cost of labor. As Toyota’s only UAW-represented plant, it typically pays workers $8 to $13 more per hour than it does at its other U.S. plants, according to Automotive News. NUMMI recognizes that pay discrepancy and says it is working to make the plant more in line with Toyota’s other production facilities.

“Neither NUMMI’s labor costs nor business conditions are competitive, so we are working hard to improve them and make NUMMI more attractive to Toyota,” NUMMI said in a statement.

However, Toyota’s decision to close the NUMMI plant could be a matter of costs and over capacity. Toyota recently completed a brand new factory in Tupelo, Mississippi, but has yet to equip the plant with any tooling or machinery. With that kind of extra capacity just laying around, it could spell the end for Toyota’s 25 year run at the NUMMI plant.

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07/13, 9:01 AM

posted by:

carstuff

Sounds so much like our domestic 3 problems.

Extra plant capacity
high union worker cost

Yep, Toyota should put in the Camry and just run it to supply rental fleets.

07/13, 9:02 AM

posted by:

Need more oil for GM

If “evaluating” means packing up and gettign the fock out of the Country like good little Jap worms, then Americans will welcome thier decision. This is GM Country.

Be American, Buy American. Buy General Motors. An American Revolution

07/13, 9:04 AM

posted by:

carstuff

Of course with this being their only UAW plant they can close it and say bye bye w/o worrying about the other plants striking.

Wonder if the workers go into job banks until they find them new jobs????

I think we will see Toyota putting in a pretty large cash burn/profit loss for the 2nd quarter.

07/13, 9:24 AM

posted by:

howsmydriving

Close it and teach those union thugs yet another lesson.

07/13, 9:38 AM

posted by:

Need more oil for GM

“I think we will see Toyota putting in a pretty large cash burn/profit loss for the 2nd quarter.”

We all hope this happens, in fact it would be great if Toyota never sold another POS vehicle ever again.

“Wonder if the workers go into job banks until they find them new jobs????”

Hopefully the workers will get a wake up call and they all lose their jobs. They deserve to for working for a foriegn Automaker. They need to learn a lesson in patriotism. It is just as unAmerican to work for a foriegn company as it is to own a foriegn product. Fock em, they deserve thier fate.

Toyota is on the skids, they’ll be gone by the next decade. Victims of the American Revolution. America will be a better place for it.

Buy American. buy GM.

07/13, 9:50 AM

posted by:

tgriffith

Toyota should close the plant so it doesn’t get saddled with labor contracts. The company already builds many models in America with more efficient labor.
http://www.cargurus.com/blog/2009/07/01/nummi-is-no-more/

07/13, 10:25 AM

posted by:

johnnycanuck

Turn it into a tin can factory. They already build the Matrix there so it shouldn’t be too much of a leap.

07/13, 11:16 AM

posted by:

ahnuconun

^Bwahaha! *Slaps Knee*

07/13, 12:40 PM

posted by:

Need more oil for GM_

Really, though, I don’t mind the foreign cars. I’m thinking about changing my ways and looking into buying foreign. After all, it makes good economic sense.

07/13, 3:06 PM

posted by:

Director1

Need more oil for GM:

First of all you don’t have a clue as you are probably some drunken hick in the back woods of god knows where that has never left his trailer nor his county. Anyhow, this is from an American who has fought in wars and I also work at that company this article speaks of. American made toyota company’s actually have more american made products built into these cars that any GM, Ford or Chrysler has ever had. Since most of all the parts on American Made Toyota’s are made in America the money is paid to American company’s and their workers. Da! And yes we do make more money per hour in Caliornia as it cost twice as much to live out here. Now, to the important stuff, yes the plant will probably close due to high cost of producing vehicles in Cal. Oh sorry, that’s short for California for the ignorant ones.

07/13, 4:26 PM

posted by:

Need more oil for GM

The answer is simple. You buy a foriegn product, you deserve to lose your job and your lifestyle for contributing to foriegn economies instead of your own. You work for that foriegn company like Honda or Toyota and you deserve the same results.

You are an embarrassment to your Country and an unAmerican, ignorant weasel. Not surprising that you are a Californian.

Buy American. Buy Gm. It is your patriotic obligation.

07/13, 4:30 PM

posted by:

Need more oil for GM

I grew up in a family that drove nothing but GM vehicles. No Fords, no Japcrap, no Hitlermobiles. Just GM. Anyone who visited were either allowed or not allowed to park on the premises depending on the vehicle they arrived in. Most of the time it was loyal GM owners who came over. The others were told to park down the street at the school and walk or my parents would pick them up. There was nothing but GM vehicles allowed on the premises.

My family is die hard Americans, die hard Patriots and die hard, loyal GM owners. Anything else is an embarrassment.

An American Revolution

07/13, 7:06 PM

posted by:

aggie531

“Anyone who visited were either allowed or not allowed to park on the premises depending on the vehicle they arrived in.”

wow you have a really selfish and mean family

07/13, 7:23 PM

posted by:

Click Here

His family is not only selsifh and mean, but stupid and knows NOTHING about economy.
Look how he claims that his “family is die hard Americans and Patriots” while he says “No Fords” DUDE FORD IS AMERICAN TOO!
Use your brain!
Oh sorry, I forgot you dont have one!

07/13, 7:53 PM

posted by:

CarsNut

Pllease NMOFGM helps me with this. Is it better for the US economy to buy a Camry made in USA or a Pontiac G8 that made in Australia?. Thanks a lot gentleman

07/13, 8:09 PM

posted by:

DrFill

Smells like a loser!
The new Tupelo plant was completed
Then, GM bails on NUMMI
Toyota left holding a GM-esque bag of inefficiency
Three strikes
And their out!
DrFill

07/13, 8:22 PM

posted by:

Click Here

“NMOFGM said: oh I didnt know Pontiac G8 is made Australia! Oh well I shall buy a Chevrolet Camaro then. Is that made in Oshawa, Ontario, USA right?”

07/13, 9:34 PM

posted by:

PassingGear

NMOFGM was really quiet for quite awhile up through the bankruptcy when the true f-ed up nature of his beloved ‘American Revolution’ became all-to-obvious to the majority of those of us who have and use their brains. Now all of a sudden he’s back and spouting all this self-serving, brainless crap about “patriotic obligation”…

Please, if you didn’t notice, we’re not living in 1964 anymore buckwheat.. The new reality is all auto companies make decisions on a global level and source cars as well as parts from all over the planet. Going with you brilliant logic the Saturn Astra is a ‘hitlermobile’… yet it’s also a GM product. What does that make you besides a hypocrite? You need to grow the ‘f’ up but I guess that won’t happen as your janitorial job at the General servicing all those the toilets must have survived the CH 11.

07/14, 2:51 PM

posted by:

CarsNut

PassingGear, please don’t chew on NMOFGM too hard, he’s retarted.

 
 
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