BBC NEWS | Toyota pulls plug on US factory — I have a lot of thoughts about this closing. In fact the Bay Area has had a bunch of car plants over the years and somehow Toyota was left holding the bag for what was originally the GM BOP (Buick-Oldsmobile-Pontiac) plant. It would have been closed years ago by GM, but they worked out a deal with Toyota to jointly run the plant. Then GM bails out leaving Toyota holding the bag. Ford had long since abandoned the Milpitas plant. California is not amenable for real factories. The land is too expensive, the taxes are too high. I cannot blame Toyota. But they are going to be blamed.
Toyota is pulling out of a production plant in the US it jointly owns with General Motors (GM), the first time it has abandoned a factory.
The world’s largest carmaker will stop production at the Fremont, California-based New United Motor Manufacturing plant in March 2010. GM announced earlier this year that it would withdraw from the venture.
Toyota said: “Over the mid to long-term, it just would not be economically viable to continue production.”
Yep…
Toyota is opening new plants all over China.
for all toyota’s trumpeting about quality, this plant was one of the worst quality plants in GM. the joint venture was only joint for GM to put the money out and for toyota to reap the benefits of having ‘american made’ cars. but, like everything, if the product is crap, it wont last long. in case you were wondering, i know this plant made the toyota matrix and pontiac vibe running right down the line side by side….
(makes you wonder what they and everyone else but the American public at large knows)
ahh..yup, the economy is on the mend..see the vote of confidence?
Of course, the fact that the USD Dollar Index has dipped into the 77 range a few times this month [if just for a minute or two] must be freaking all sorts of people out.
now…couple this news with the FDIC’s troubled bank list report that came out yesterday, indicating a [yet another record setting] 416 banks are on “shaky” ground.. [“we” were all expecting a report of 500-1000 banks..and a run on the dollar)
-and the FDIC has i think $10b to cover them all..
..if the market tomorrow again does its lunatic rally [with minuscule volume that even trends down a bit as the markets go up](!) with this news on the wire..
well..somebody in the media stream had BETTER SCREAM(!) foul..
one has to wonder though..will Bernake break and support the dollar, or continue to puff magic air into wall street…(and will he survive it all)
tic toc, tic toc..
-s
The Toyota plant in Georgetown, Indiana is still going strong, thank goodness! Maybe they can move production of the Matrix there.
Hey! What happened to the “Devalued Prime Minister” post? I was going to watch that!
According to swedish radio news production will be moved to Texas, Canada and Japan.
Here in San Antonio the red carpet is rolled out, the tequila is being poured and the Mariachi band is tuning up.
Off the subject: How about those Little League boys from SA!?! That’s going to be a tough game against Chula Vista.
The Toyoda family is back in charge of the company. Among other changes, is a very big knife shutting down and cutting back facilities that aren’t productive enough.
That even includes Japan. I realize nothing “exists” outside the U.S. for some folks; but, the shutdown in CA just means it should have been done before the recession.
The most significant production item for Toyota at the NUMMI plnt was Corollas and that’s easy to shift somewhere like San Antonio. It was Toyota’s heaviest hitter during cash-for-clunkers.
What Americans might reflect upon is the knife was also taken to management of Toyota America. This is the division that brought major changes in Toyota styling and marketing to the whole company – and relentless expansion in overhead, redundant middle management a la GM.
Wait, it’s too expensive to have a factory in California?
So Toyota closes its only UAW plant? Surprise!
Having lived much of my life in California, and having seen the attitude toward business in Calif compared with other states and countries, frankly I’m surprised any large business still exist there.
I know Calif has good infrastructure and etc, but other places have caught up and passed them a long time ago.
I think Mike has it with the idea that part of this is getting rid of the UAW. It isn’t even about whether or not the UAW workers were more expensive. The Japanese auto companies are super anti-union so I wouldn’t be surprised if they wanted to get rid of them on principle.
This NUMMI deal was always weird anyway. I worked at a Japanese owned factory that made door latches for Honda, Chrysler, and Nummi. Back then Nummi was making the Geo line. I’m surprised that GM stuck with the deal as long as they did.
1. Toyota is also closing a plant for 18 months in Japan
2. They stopped work on a new plant in the US
3. They had “jobs bank” workers in their big truck plant in TX
I love how even when Toyota has negative news it’s STILL GM’s fault. Hilarious.
Give ’em a big fat bail-out!!
This obviously has nothing to do with high taxes and expensive union wages.
Good synopsis on the top.
….leaving Toyota holding the bag.
Another business in Nor Cal being shutdown!!?? Say it isn’t so. I have lived in CA all my life (minus a few year long overseas all expenses paid trips from Uncle Sam), in LA, the Bay Area, and behind the redwood curtain. I wonder what will happen to all the citizens that work blue-collar jobs? In our area there are very few blue-collar jobs left: no timber, anemic fishing, no manufacturing, dwindling construction — you get the picture. There seems to be more education workers, health care professionals, and lawyers in the area than ever before. How can the public service industries survive if all the blue-collar jobs go the way of the dodo? My son’s school had to “let go” of 2 teachers this year because families are moving out of the area for work (a school with less than 250 students). The local hospital let go an MD and 5 nurses, along with various staff, and now there is a hiring freeze. I guess I could always go back into the military if I lost my job — they always seem to be hiring.
I wonder if the grass is actually greener in Texas?
You should also remember, now that the UAW is a part owner of GM (Government Motors) they are now a competitor of Toyota and other manufacturers.
Here is a link to today’s Globe and Mail saying they will be shifting the Corolla to an Ontaio plant:
http://www.theglobeandmail.com/globe-investor/californias-toyota-loss-is-ontarios-gain/article1267751/
Maybe some of the jobs could move here if they get things moving along again.
Not-so good news for Californians
Surely California could have prevented this by raising taxes and increasing regulations.
After all, who knows more how to help business than liberals?