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Nummi facility in Fremont, Calif.  (Source: The Auto Channel)
The last auto manufacturing plant on the west coast will close, Toyota confirms

The last remaining auto-making facility on the west coast will close in March now that Toyota confirmed rumors the plant will close at some point next year.

Toyota's board voted to halt production at the Nummi plant in Fremont, California, a facility built in 1984 that Toyota shared with General Motors.  GM ended the partnership several months ago, which immediately started rumors of a possible plant closure sometime in 2010.

The Nummi plant produces the Toyota Corolla, Matrix, and Tacoma along with the Pontiac Vibe (which is being killed along with the Pontiac brand).

United Auto Workers union members have entered negotiations with New United Motor Manufacturing officials, attempting to see if there is any way Toyota will keep the factory open longer.  The Nummi facility served as Toyota's first  manufacturing foray in the United States, with Nummi employees saying it was them who helped shape Toyota's success.

Toyota, which hasn't had to close a plant outside Japan, was rumored to announce the plant's closure last spring.  Nummi currently employs 4,600 employees, and if Toyota halts production, then the plant's closure will put all of those employees out of work.  Furthermore, supports indicate the ripple effect from Nummi's closure could impact up to 50,000 people.

Toyota is expected to reduce worldwide capacity from 1 million vehicles down to 700,000, with the Nummi closure expected to help Toyota reach that goal.



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RE: another example
By the goat on 8/28/2009 9:15:49 AM , Rating: 4
quote:
Of companies not wanting to do business in California. Who'd want to? Everything is expensive and the taxes are outrageous. Companies are moving out of high tax states in droves and moving to states with low or no taxes like Texas and Florida. That's why there's political support for a Fair Tax here in SC to replace the income tax.


Yea I'm surprised the factory in question lasted as long as it did. The cost of living in California is outrageous. That means worker salaries are much higher compared to factories in other states.

My state (Vermont) has similar problems retaining and/or enticing companies. The VT government does nothing to help large corporate/industrial capitol projects. Where neighbors (New York, New Hampshire, etc.) bend over backwards with corporate tax breaks and infrastructure improvements. Guess where companies choose to build/expand.


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