Last Auto Plant in California Shut by Toyota

Last Auto Plant in California Shut by Toyota

Toyota has announced plans to close the last car plant in the West Coast in March next year, triggering angry protests from the United Auto Workers, local groups and politicians in the State of California. Closure of the New United Motor Manufacturing Inc. (NUMMI) plant in Fremont, California, across the bay from San Francisco is the first time that the Japanese manufacturer has deviated from its policy of maintaining employment.

Longstanding commitment to stable employment Toyota is being challenged by the heavy losses suffered during the past 15 months. Lost $ 7 billion during the past year, and more red ink flowing in years. And the economic slowdown and declining car sales at Toyota S. U. carry excess capacity in the U.S., but leaves no choice but to cut production, said David Cole, Center for Automotive Research in Ann Arbor, Michigan.

But it was not quite a Toyota decision: Toyota's partner in the plant, General Motors chose to pull out in June last year, leaving the plant unprofitable, Toyota says. "Following the decision by General Motors to pull out of Nummi joint venture, Toyota conducted a thorough review of alternatives in light of current and anticipated market conditions," says TMC Executive Vice President Atsushi Niimi. "Based on this study, we have decided that the mid to long term, it just would not be economically viable to continue production contract with Nummi."


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