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Toyota’s board has voted to end production at its NUMMI plant starting in March 2010, reports the AP [via sfgate]. The factory in Fremont, California, was a joint venture between Toyota and GM, but its future was first cast into doubt when GM announced it was withdrawing after discontinuing the Pontiac Vibe built there. The state of California discussed incentives to keep Toyota (and its 4,600 jobs) at the plant, but Toyota’s 1 million unit global capacity reduction was the higher priority. It’s possible that state incentives could lure other OEMs to the factory, but local incentive-grubber Tesla has already declined pursuit of NUMMI on the grounds that it was more factory than the start-up could handle.
Rest in peace indeed. Now that Toyota have political cover for shutting down the plant (thank you GM), they can move production lines elsewhere where it’s cheaper to make.
I could see this coming all the way from Michigan.
Toyota are reducing worldwide production by 10%.
They’re getting smart quick in Toyoda City, aren’t they?
I guess when you can’t make money in one of your major markets, it kind of focuses one’s attention a bit.
The Matrix overlapped with the xB/xD and even the low-end RAV4 anyway.
That’s too bad, one of the first (if not the first) plants to show that made-in-Japan reliability could be achieved by unionized Americans.
Another GM lost opportunity, as they never seemed to apply the lessons learned there to the rest of their operations. At least it produced some reliable Chevies back in the day.
The reason for NUMMI was always politicial and not financial – both for GM and Toyota.
With all of the excess capacity (even in a good market, which this isn’t right now) SOMETHING has to close. It only made sense for Toyota if GM was there too. Once GM left, surely nobody thought that Toyota was going to keep building vehicles at its only UAW plant in the entire world.
If DSM is disjointed, and NUMMI is gone, will CAMI and AAI stay?
To recap:
1. NUMMI dead
2. Ractis and ist/Scion xD go from Takaoka to Kanto
3. Vitz/Yaris go from Takaoka to TICAichi
4. Takaoka will increase Corolla production
5. TMMC will increase Corolla/Matrix production
6. TICAichi will lose RAV4 ?
7. TMMC Woodstock RAV4 production goes 2 shifts ?
8. Tacoma goes to Texas or Indiana ?
Either the cute kid in picture misspelled ‘NUMMI’ or the parent that made the sign for her is going to have a hard time finding a new job……
I dont know what the UAW contract with Toyota entails, but I can only assume that Toyota will soon discover the joy of paying generous wages/benefits to idled workers who do nothing.
No mattter what views you hold,or what your position on the political spectrum is, 4600 well paying jobs are gone. With the ripple effect a whole lot of folks will feel the impact.
Its not good news for anybody anywhere.
I dont know what the UAW contract with Toyota entails, but I can only assume that Toyota will soon discover the joy of paying generous wages/benefits to idled workers who do nothing.
The contract is expired, is on a day to day basis, when they walk away, they just walk away. This is part of what killed GM, the inability to run a business based on current economic conditions.
There was a time when most americans would have felt sympathy for the employees, now I think most would just assume to chuck a D cell at them while cruising by. And I imagine that the UAW will try to use this by having thier operatives at the transplants saying “see what happens when you don’t have the UAW”, when the people will actually see what happens “when you do have the UAW”
@ pig_iron
AAI has to stay. They make the Mustang and the Mazda 6 there, and Mazda doesn’t have another plant in the US.
@ Omoikane
What about Tecate. Toyota makes the Tacoma there, but it is a lower production facility.
Either way I am sad that NUMMI will be gone. I worked with many fine people from that plant. Plus it is in a really beautiful area.
I live in Fremont, CA and it will be a pity to see more of my neighbors lose their jobs, and to not be able to buy a car made in our hometown. Not that I’m in love with the Corolla, Vibe, or Tacoma, but I could’ve dreamed of an enthusiast’s car being built there someday.
It won’t hurt as much as some of the plant closures elsewhere, so I don’t think we should get special help or anything. But it’s still a pity.
I live in Fremont, CA and it will be a pity to see more of my neighbors lose their jobs, and to not be able to buy a car made in our hometown.
That is what it feels like when this shit hits close to home. If you don’t have a local factory or in my case dozens of lcoal factories and shops, then it wouldn’t matter. Doesn’t it feel nice to own a car that was built down the street and not in Mexico?
toyota to fremont workers:
U Ain’t Workin (no more)
Those of you about to be unemployed in already high unemployment California can send your thank you notes to the remaining UAW workers who’ll stick to their way above market compensation packages (for now) to the following address: Ron Gettelfinger, Champion of Working Families, c/o UAW, Detroit, Michigan, USA.
I’m surprised the UAW didn’t carve out some sort of exception for NUMMI via the bankruptcy process.
Don’t almost all other GM plants have contract provisions allowing a transfer to another plant or a payment/buyout if a worker is permanently let go? Was the NUMMI contract that different?
Who was the actual killer? Did GM murder the plant and hand the facilty to Toyota or did GM hand a breathing entity to Toyota and they strangled the rest of life out of the facility? Either way, another GM victim.
The last I heard, “new” GM not only dropped out of the partnership, they left the Fremont plant with “old” GM as excess to be liquidated. Toyota has lots of reasons to shut down operations there, but not owning the plant (or equipment?) has to be a very big one.
The first car I ever owned was a 1987 Toyota Corolla FX16 that was produced at that plant that I bought new as a college senior, my only credit reference was my job offer letter from IBM.
The car was a gem, gave me 115k trouble-free, fun-filled miles (well almost, but the problems it had were due to the aftermarket sunroof the dealer put in) before I sold it to a guy who was planning to export it to Costa Rica. It may still be soldiering on down there. I probably should have kept it longer but I was a young guy who wanted another new car.
I’m not sure if it’s sad, or just disgusting, to see people post glee over people losing their well-paying jobs just so they can poke a virtual finger in the eye of the UAW online, but that’s apparently what right-wing discourse in this country has sunken to.
The first car I bought was a 1987 Toyota Corolla FX16 made in that plant. I bought it as a college senior and financed it on the strength of my job acceptance letter from IBM.
That car was a gem, it gave me 115K fun, trouble-free (well almost, but all the problems it had were due to the aftermarket sunroof the dealer put in), and effecient miles. I sold it to a guy who exported it to Costa Rica, it may very well still be soldiering on down there.
I probably should have kept it longer, but I was a young guy who wanted to get a new car.
On another note, I’m not sure if it’s disgusting or just sad to see people posting glee over 4,600 Americans losing well-paying jobs, just so they can poke a virtual finger in the eye of the UAW online. Such is the state of right-wing discourse, I guess.
(sorry if this is a double post, first one seems to have vanished)
Yes Yes Yes!!! This is what is needed. Hopefully the jobs lost mean another 4600 foreclosures, this is what will help get home prices down in the bay area. I love it. I hope other plants close!!
Fresh from the press:
Tacoma to Texas. Corolla to be picked up by Cambridge and Takaoka:
http://www.earthtimes.org/articles/show/tmc-to-end-production-contract-with-nummi-in-march-2010,940213.shtml
xyzzy:
On another note, I’m not sure if it’s disgusting or just sad to see people posting glee over 4,600 Americans losing well-paying jobs, just so they can poke a virtual finger in the eye of the UAW online. Such is the state of right-wing discourse, I guess.
I’m no fan of unions, but grew up in a UAW area. There are lefty union guys who labored long in other bankrupt businesses (steel, airlines) that never saw a bailout cent from Uncle Sam. They’re 10X more disgusted with the UAW than any posting here.
“On another note, I’m not sure if it’s disgusting or just sad to see people posting glee over 4,600 Americans losing well-paying jobs, just so they can poke a virtual finger in the eye of the UAW online. Such is the state of right-wing discourse, I guess.”
They’re getting their due for decades of laziness, graft and corruption. There’s nothing sad or disgusting about unskilled, uneducated, overpaid bums having to go out into the job market and find a position that pays them what they’re really worth. I wouldn’t hire one of them to dig a ditch for minimum wage but I’m sure some fool will. Hell, I’d trust a day laborer fresh across the Rio Grande long before a union clown.
Good cars came out of that plant. And frankly, the cost of living in California didn’t exactly leave those Nummi folks rolling in it. I would think the typical UAW compensation package, in California, would be close to the bare minimum required to scrape by. I doubt any these folks had beach homes.
Political leanings notwithstanding, I’m sad anytime Americans lose jobs. Soon, we’ll all just stand around staring at each other, trying to sell each other overpriced coffee, homemade baskets, knock off purses, Avon, and whatnot.
I can’t help but think the ship is sinking fast.
This raises a lot of questions.
So we are now supposed to believe that NUMMI was never profitable?
Really? Toyota doesn’t make a profit on the Tacoma or the Corolla? That is hard to believe.
I suspect the truth is a bit different.
Maybe: the NUMMI factory provides vehicles at cost to Toyota. Toyota sales adds a markup and sells them with a profit. Presto: Toyota makes a profit while NUMMI doesn’t.
Or: Toyota charges NUMMI and GM large fees for design and other services and makes a profit that way.
Either way, why would Toyota build so many cars for so many years at NUMMI without somehow turning a profit?
EJ_San_Fran: I guess that’s what Toyota learned from GM: build cars for years without making a profit.
UAW is a cost adder to a company. They do not easily work with a company. They do not allow mobility in situations. They protect poor work ethics. I am surprised that Toyota put up with it this long. Management at NUMMI had a king kong attitude and were abrasive to their suppliers which is a GM trait not a Toyota trait. Toyota works with their suppliers as they understand strong suppliers makes a stronger Toyota. NUMMI could never get rid of union attitudes nor did they want to they let those attitudes flourish. This place reminded me of a frosted mini wheat Toyota being one side and GM the other. I knew in 2008 that Toyota would take the first opportunity to get out when they could. Now 5000 people lost their jobs however most should have thought about making it more profitable when they had the chance. Unfortunately, some good people will get tossed out of a job too but hopefully Toyota will give the good ones a chnce to relocate to other plants. California has a strong power industry hopefully some can find a job in that field.
Good luck to the good ones! Don’t take that union attitude with you to the next job you will find yourself unemployed once again. Its a recurring theme in both countries.