Report: Toyota to abandon NUMMI joint-venture plant
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Report: Toyota to abandon NUMMI joint-venture plant
http://www.leftlanenews.com/report-t...ure-plant.html
Report: Toyota to abandon NUMMI joint-venture plant
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.
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.
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Its not over... yet:
http://www.rocklintoday.com/news/tem...=7892&zoneid=4
There's also insider speculation that Tesla could take over the plant, however that's mostly rumor and conjecture at this point.
One thing is for sure, Toyota is divorcing itself from the NUMMI joint venture with GM.
Gaines Co-Authors Legislation to help California's Auto Industry
Sacramento - Taking action to potentially save nearly 30,000 jobs that could be impacted by the potential closure of the New United Motor Manufacturing Plant (NUMMI) in Fremont, Assemblyman Ted Gaines (R-Roseville) has joined Democrats and Republicans in co-authoring two bipartisan bills that were introduced to help California’s struggling auto industry and keep the last remaining auto factory in the state open for business.
“California’s auto industry is an important part of our state’s economy, providing jobs for thousands of highly-skilled workers and providing a significant boost to local economies throughout the state,” said Gaines, the chair of the California Legislative Automotive Study Group. “Last week, I joined a bipartisan group of lawmakers in touring the NUMMI plant in Fremont, the last auto plant in the state that is now under real threat of closure. We cannot allow this to happen. The Legislature must do whatever we can to keep auto manufacturing thriving here as it is an important part of the economic engine of California.”
Gaines has co-authored Assembly Bill 4X 31 with Assembly Majority Leader Alberto Torrico (D-Fremont), which will establish a sales and use tax exemption for machinery and equipment, including component parts used in the automobile manufacturing process. California is one of only three states in the nation that does not have an exemption or credit for manufacturing equipment purchases.
Additionally, he has co-authored Senate Bill 830 with Senator Rod Wright (D-Inglewood), which will declare the NUMMI plant its own enterprise zone, providing the incentives and relief associated with enterprise zones needed to secure the plant’s workforce.
“We believe the plant is a public good,” said Wright, “the fact that we could lose our last car manufacturing facility is unconscionable.”
Members of the California Legislative Automotive Study Group, led by Assemblyman Gaines, toured the NUMMI facility last week and witnessed first hand the impact on the state’s economy.
“The high cost of doing business in our state has resulted in Toyota considering closing the last auto factory in California because they can’t afford to do business here while staying competitive,” said Gaines. “That’s why these measures are so important – to lower the costs of doing business in our state and provide incentives for car manufacturers to keep building the cars of the future in California and protect the jobs of thousands of workers.”
Assemblyman Ted Gaines represents the 4th Assembly District, which includes portions of Placer, El Dorado, Sacramento & Alpine counties.
Sacramento - Taking action to potentially save nearly 30,000 jobs that could be impacted by the potential closure of the New United Motor Manufacturing Plant (NUMMI) in Fremont, Assemblyman Ted Gaines (R-Roseville) has joined Democrats and Republicans in co-authoring two bipartisan bills that were introduced to help California’s struggling auto industry and keep the last remaining auto factory in the state open for business.
“California’s auto industry is an important part of our state’s economy, providing jobs for thousands of highly-skilled workers and providing a significant boost to local economies throughout the state,” said Gaines, the chair of the California Legislative Automotive Study Group. “Last week, I joined a bipartisan group of lawmakers in touring the NUMMI plant in Fremont, the last auto plant in the state that is now under real threat of closure. We cannot allow this to happen. The Legislature must do whatever we can to keep auto manufacturing thriving here as it is an important part of the economic engine of California.”
Gaines has co-authored Assembly Bill 4X 31 with Assembly Majority Leader Alberto Torrico (D-Fremont), which will establish a sales and use tax exemption for machinery and equipment, including component parts used in the automobile manufacturing process. California is one of only three states in the nation that does not have an exemption or credit for manufacturing equipment purchases.
Additionally, he has co-authored Senate Bill 830 with Senator Rod Wright (D-Inglewood), which will declare the NUMMI plant its own enterprise zone, providing the incentives and relief associated with enterprise zones needed to secure the plant’s workforce.
“We believe the plant is a public good,” said Wright, “the fact that we could lose our last car manufacturing facility is unconscionable.”
Members of the California Legislative Automotive Study Group, led by Assemblyman Gaines, toured the NUMMI facility last week and witnessed first hand the impact on the state’s economy.
“The high cost of doing business in our state has resulted in Toyota considering closing the last auto factory in California because they can’t afford to do business here while staying competitive,” said Gaines. “That’s why these measures are so important – to lower the costs of doing business in our state and provide incentives for car manufacturers to keep building the cars of the future in California and protect the jobs of thousands of workers.”
Assemblyman Ted Gaines represents the 4th Assembly District, which includes portions of Placer, El Dorado, Sacramento & Alpine counties.
There's also insider speculation that Tesla could take over the plant, however that's mostly rumor and conjecture at this point.
One thing is for sure, Toyota is divorcing itself from the NUMMI joint venture with GM.
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Given California's horrible tax burden (temporary give-backs and exemptions notwithstanding), nearly bankrupt economy and lack of basic things like dependable electric service; there is little reason for any automaker to keep a plant there and even less reason to consider opening one.
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From: Kansas City, MO
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From: Mack and Bewick
Now that the GM controlled accident has started and the cuts are going to come I wonder how many politicians who were in favor of letting GM implode are now going to be backing all these emergency measures?
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From: The Golden State
Given California's horrible tax burden (temporary give-backs and exemptions notwithstanding), nearly bankrupt economy and lack of basic things like dependable electric service; there is little reason for any automaker to keep a plant there and even less reason to consider opening one.
1. California, if it were it's own country, would still be the world's eighth largest economy. That puts it directly behind the rest of the US combined, Japan, Germany, China, the United Kingdom, France and Italy. Between 1999 and 2002, California had a bigger economy than France.
2. California's GDP is $1.8 TRILLION. How does that compare to your state?.... Oh... I'm sorry. There isn't a state that comes even close.
3. Exports from California alone exceed $134 billion. That's 13% of the entire U.S. of A. No other state even comes within spitting distance of California's export volume to the European Unionand the Asia Pacific region.
So the idea of California's economy being bankrupt is about as far off the mark as anyone can possibly be.
Where California's problem DOES lie is in a subject that can be a lesson to all those anti-tax, I-want-every-thing-free people.
Here's the deal.
Most every state in the union gains taxes on a wide range of things. The reason for this is because it protects income during a wide range of economic situations.
Back in the 1970s, California's Proposition 13 not only put a cap on property taxes, but actually rolled them back by nearly 60%, then limited increases to 2% per year. It also required a 2/3s majority to raise any additional taxes.
While times are good, and the housing market is booming, California's economy is massive enough that it can shrug it off and run up surpluses.
But when the real estate market & manufacturing are down (yes, we actually make stuff here), then unlike other states that have broader based means of income, take away California's ever expanding real estate and halt manufacturing (the 2 things California is disproportionately dependent on for income) and things get bad very, very fast.
The downsides to how we're set up are obvious.
a. Taxes have to be made up somewhere, therfore "fees" and "surcharges" abound, as do a relatively high income & state tax rate... which by the way, hasn't changed much from the 70s.
b. Rich homeowners make outr like bandits. While beachfront and exclusive neighborhoods skyrocketed in value (in some instances, as high as 30-40%), the property tax increase was rationed to 2% of what it was the previous year as long as it had the same owner... independent of the actual value of the property.
c. It makes the state especially venerable to downturns in the economy, and the 2/3s needed to raise taxes... or even pass a budget.... can not only mean yearly headlines for the state, but the annual deadlock when each legislator fights for his own constituents. The worse the downturn, the harder it is to get things done.
Also, let me point out that there are other states that are in just as bad as shape as California when you consider their won GDP, and size of their economy and population.
Consider that in additiona to California, Colorado, Georgia, Hawaii, Kansas, Kentucky, Maryland, New Mexico, Utah, Virginia, Washington, and Wyoming all had to tear up their budgets and start all over again because the economy ripped them a brand new one. As I recall, at minimum, Pennsylvania, Illinois, and New York are still trying to find a way to close their gap, and are having a bear of a time.
.... and they don't need a 2/3's majority to do so.
Michigan is a far greater basket case than California.
At least California still has a strong economy, a strong potential tax base, and we can still afford to keep our roads and utilities in good repair.
The point here is twofold.
1. It takes a certain amount of moiney to run a government. Regardless as to if it's city, county, state, or Federal. That money comes by way of taxes. "Starve the Beast" is a great tagline. But in the real world, where (unlike the Federal Government) budgets have to balence each and every year, you have to fund what you run. Cutting and Hoping things will shrink creates deficits.
2. California is in the news not just because it makes great press. California is a massive economy that deals in numbers that pretty much every other state can only dream about. Our deficit seems mindblowing... until you get your arms around the size of the state economy.
Also, if California sneezes, the rest of the country catches the flu.
California also serves as a reminder as to what can happen when you underfund government and mandate super-majorities to pass financial legislation.... something no other state does to this extreme.
Last edited by guionM; Jul 24, 2009 at 10:13 PM.
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Since it's so great feel free to start your own country, it seems to be what both sides want since all I hear from california is how big their economy is and how much they contribute.
Like the USA, your economy is built on debt, inflation and foolishness and like toyota the rest of us want no part, least you drag us down when it all implodes.
Like the USA, your economy is built on debt, inflation and foolishness and like toyota the rest of us want no part, least you drag us down when it all implodes.
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From: Greenville, SC
Anyone read the comments at the link? Some are pretty damn funny:
Might have missed it, but where will the Tacoma be built? The one the rest of the world gets is different, the Hilux.
@Get It Right: so every other news, be it automotive or not, that is reporting on Toyota running form the idea of operating a union plant by themselves is also wrong?
when you lick your lips, does it taste like Mr. Toyoda’s *** hole or is it just bland and tasteless like their vehicles?
when you lick your lips, does it taste like Mr. Toyoda’s *** hole or is it just bland and tasteless like their vehicles?
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From: U.S.A.
California's problem is not an "underfunded" budget; it's problem is a government that is unwilling to limit its spending to match its revenue.
Last edited by Route66Wanderer; Jul 24, 2009 at 11:32 PM.
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Oh, I could start ranting about California politics. But I'll just leave it as this:
Even if California wasn't bankrupt, the state wouldn't be handing out hundreds of millions of dollars to automakers like Mississippi does. The fact is the jobs at the Nummi plant were bought by other states through corporate welfare.
Even if California wasn't bankrupt, the state wouldn't be handing out hundreds of millions of dollars to automakers like Mississippi does. The fact is the jobs at the Nummi plant were bought by other states through corporate welfare.
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Joined: Nov 2000
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From: Chicagoland IL
Originally Posted by guionM;60505732. California's GDP is $1.8 [b
TRILLION[/b]. How does that compare to your state?.... Oh... I'm sorry. There isn't a state that comes even close.
.
.
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Posts: 9,705
From: Oakland, California
As an add on to the original story, this morning the local news was reporting that NUMMI currently has enough orders to continue production through October. Seems the CARS program is helping keep NUMMI around a little longer.
