Toyota to dump California plant
July 25th, 2009 by Bill Cawthon
It appears the days are numbered for California’s last automotive production facility. Sources with knowledge of the situation say the Japanese automaker will most likely wind down its share of the New United Motor Manufacturing Inc. plant it once shared with General Motors
, ending the employment of the only UAW workers building Toyota
On Thursday, Toyota
said it will explore its options with Motors Liquidation Co., the new name for the “old” GM which will be selling those assets that were not taken by the “new” GM when it came out of bankruptcy. GM’s half of NUMMI is one of those orphaned assets.
Yoshi Inaba, a Toyota
executive vice president and head of its North Ameircan operations, told reporters, “There is a likelihood we would not buy the rest of it.”
Despite the fact the NUMMI plant has met or exceeded the productivity levels of other Toyota
plants, the dramatic decline in sales means the company ha too much excess capacity. Toyota
could shift production of the Corollas and Tacoma built in the Fremont, California plant to other facilities.