Toyota was the biggest beneficiary of cash for clunkers, and right after it has ended they say they’re pulling out of a California factory – the only one where they have the dubious pleasure of dealing with the UAW. But it’s not quite that simple.
The first two paragraphs make it sound like Toyota are the bad guys. Thanks Reuters. You’re the guys who just lay out the facts with no spin and no secret offensive codewords, right?
Toyota Motor Corp will end production at a California plant it has shared with General Motors for 25 years, prompting regret and criticism from labor and politicians facing more job losses in an industry and a state pummeled by recession.
The move to cease operations at the plant in Fremont by March 31 puts at risk more than 4,500 jobs and highlights significant overcapacity global carmakers are facing as they try to shake a recession-fueled sales downturn.
The UAW is outraged.
“This is no time to close a highly successful manufacturing facility,” Jimmy Settles, a United Auto Workers vice president, said in a statement. “California is one of the most important markets for Toyota.”
It was the only UAW facility operated by Toyota.
The decision stung even more for labor and lawmakers in light of news this week that Toyota was the biggest beneficiary of the $3 billion U.S. government “cash for clunkers” incentive program designed to jump-start industry sales.
You have to read between the two blocks above to get the rest of the story…. (emphasis mine)
The decision on the venture with GM known as New United Motor Manufacturing Inc, or NUMMI, was part of the Japanese automaker’s plans announced earlier this week to slash production more broadly to stem losses.
GM pulled out of the partnership in June as part of its bankruptcy reorganization, prompting Toyota to follow suit.
So let me get this straight. We supposed to be mad at Toyota because Obama/UAW-owned GM backed out of its half of this plant and Toyota won’t go it alone? No, seriously?
Well at least Sen. Feinstein gets it to some extent, though her solution is to look to Washington for help of course.
Senator Dianne Feinstein said Toyota told her staff that GM’s decision to pull out of the venture in June left Toyota operating a facility at less than full capacity “with no demand to justify” expanded production.
“I’m profoundly disappointed,” Feinstein said. “I very much regret this.”
Feinstein said she was also told by Toyota the Fremont plant was aging and could not compete with two other plants in the South, and that production costs were too high in California.
Feinstein said Toyota grew “more remote and less transparent” over attempts by her office to determine NUMMI’s fate and weigh options.
Her staff has met with the Obama administration’s autos task force to discuss other manufacturing options for the facility.
UPDATE – A Bloomberg article has more background and other info. These quotes are not in the same order as in the article.
GM was the factory’s sole owner from 1963 until 1982, when it closed the Fremont Assembly plant owing to escalating costs and labor conflicts with union workers.
…
Shared by GM and Toyota since 1984, Nummi was Toyota’s first U.S. auto-assembly factory. It’s the only large auto- assembly plant on the U.S. West Coast.
…
Nummi has the capacity to make 420,000 cars and pickups each year. It only made money in 1992, the result of California’s taxes and labor and pollution rules, as well as the plant’s UAW contracts, according to an estimate by Credit Suisse Group AG analyst.
…
Toyota’s announcement “is devastating news for thousands of workers in California,” said UAW President Ron Gettelfinger. “They deserve better than to be abandoned by this company.” (Wait a second! Didn’t the UAW’s own company — GM — abandon them too?)
Steve Maley
Neil Stevens
Daniel Horowitz
Where is Howard Hughes when you need him?
vettepilot (Diary) Friday, August 28th at 11:15AM EST (link)Would SOMEONE please stand up to these idiots?! bk, thank you for including the following quote, because I think it’s one of the more important ones in the story:
“Feinstein said Toyota grew “more remote and less transparent” over attempts by her office to determine NUMMI’s fate and weigh options.”
These people are power-hungry dictators! Toyota grew “more remote and less transparent?” Excuse me? Since when does her office have the responsibility or authority to decide what Toyota does with it’s assets? And let’s be honest, it’s not NUMMI because NUMMI ceased to exist when GM was hoisted into the Obama dinghy.
Sorry for the rant, but the extent to which this Congress consistently oversteps its bounds is absolutely disturbing.
I thought the same thing - there was no more NUMMI
bk (Diary) Friday, August 28th at 11:31AM EST (link)Some of the workload is moving to other countries, but the small Tacoma trucks will get added to the large Tundra truck facility in San Antonio. One can only wonder how much simpler it is to do business in Texas at a lower price than in California. Not even counting union vs non-union, imagine how much simpler the environmental stuff is to give just one example.
Reading the last paragaph: it
civil truth (Diary) Friday, August 28th at 11:31AM EST (link)The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/
That was prematurely sent due to computer weirdness
civil truth (Diary) Friday, August 28th at 11:32AM EST (link)I don’t have a clue what happened. I’ll rewrite below
The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/
Read the last paragraph and then tell me who's in charge of the auto companies?
civil truth (Diary) Friday, August 28th at 11:43AM EST (link)No fig leaf left – it’s officially Government Motors
It doesn’t say that Diane met with GM officials (or Chrysler or Ford), which are the logical decision-makers one would expect if we’re talking about a non-governmental companey. Rather she’s going to “consult” the auto task force. The only conclusion is that, like Barney Frank, Diane going to exert political pressure through this pannel to make GM or Chrysler an offer they can’t refuse to manufacture cars at Fremont and save the UAW’s bacon.
Don’t know if GM or Chrysler will pony up, but it’s going to be more taxpayer dollars down the drain. As business decisions are going to be dictated by Congress. Welcome to mafia government.
Worse, if Diane is successful, she will be hailed by the California papers for “saving jobs” rather than pillories for further sabotaging the health of the victim company and costing more taxpayer dollars.
But hey, so long as we get ours, who cares about a healthy economy – or a government of laws, right?.
And this is what is going to happen with ObamaCare – political decisions will favor certain groups (starting with Congress’ families and big Labor) – and by uneconomically driving up the price will screw everyone else. This is what happens when politicians are in charge of business decisions.
The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/
The O admin might have almost killed
Richard Mullins (Diary) Friday, August 28th at 12:10PM EST (link)US auto makers but that doesn’t stop Us from restarting them. I’m not ready to roll over and let go(I have a plan in place). I’ve boycotted the big 3 for their use of the UAW and now there’s a chance to have to some US automakers without UAW workers.
Richard Phillip Mullins BlogThe Squash Satire SiteNews on Happy Jet Airlines
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Joe Biden is like a Decrepit Park owner with a Meth lab that happens to not only be a dealer but a user.
Let’s Bankrupt the Democratic paty. Make spend all the money to defend thier candidates.
As a (sort of) insider to this
TNJim (Diary) Friday, August 28th at 12:15PM EST (link)it would simply be cheaper to restart construction at the idled Mississippi plant Toyota has as well as move Tacoma production to Texas than try to go it alone at NUMMI. With the high operating costs associated there, like the CA taxes, enviro regs, there was simply no way Toyota could go it alone, not in this market. Leave it to the union to slam Toyota for making a sound business decision. BTW, I don’t know if Toyota will resume construction on the Mississppi plant, but it was an option being discussed. Now that Cash for Clunkers is over, they’re taking a wait-and-see approach.
Tundra plant was underutilized
bk (Diary) Friday, August 28th at 12:48PM EST (link)I think they shut it down for a couple months and paid employees to go work on various civic projects instead.
It’s all part of normal business balancing, though the contrast of doing business in anti-corporate SF area vs in business-friendly SA area could not be more stark.
Majorly underutilized
Richard Mullins (Diary) Friday, August 28th at 12:54PM EST (link)I remember back when I was a courier an TMMTX was being built, what a big place that was going to be. They didn’t have paved roads yet and Spur 66 was already there as a connector to Texas 16.
Richard Phillip Mullins BlogThe Squash Satire SiteNews on Happy Jet Airlines
Rmullins Pics
Rpmullins Twitter
Joe Biden is like a Decrepit Park owner with a Meth lab that happens to not only be a dealer but a user.
Let’s Bankrupt the Democratic paty. Make spend all the money to defend thier candidates.
You are correct, bk
TNJim (Diary) Friday, August 28th at 12:55PM EST (link)It was shut down until it was time for the 2010 models to be made. When the bottom fell out of the full-size pick-up and SUV market last year they kept a few on hand until the special orders were filled then it went idle for about 3 months or so.
When the Wife needs a new commuter car
Darin_H (Diary) Friday, August 28th at 12:39PM EST (link)I think we’re going to have to look at a Corolla for her.
A visionary coward says that anger can be power, as long as there’s a victim on TV – Flat Top, Goo Goo Dolls
Camrys RULE!! (nt)
IJB Friday, August 28th at 12:56PM EST (link)Atlas Shrugged
DavidSage (Diary) Friday, August 28th at 7:03PM EST (link)The UAW and Democrats are mad that these thousands of laid off union workers are no longer going to be able to fund their left-wing causes.
Conservatives need to boycott ALL of the Big 3,(GM, Chrysler and Ford). I’m willing to bet most of the Big 3 sales come from Republican consumers. I know some conservatives say we should cut Ford some slack since they didn’t accept bailout dollars, but they still use UAW labor, and that’s the main problem. The UAW gives hundreds of millions to causes and provides all sorts of resources to left-wing causes and candidates. Consumers are unwittingly bankrolling these political activities. In addition, the Ford Foundation gives millions to all sorts of liberal causes.
Buy brands like Toyota, Honda, Nissan, etc. Most of their models have a large manufacturing presence here, and their workers aren’t donating MASSIVE amounts of money and man power to left-wing causes.
I agree David and my family who has bought 4...
JadedByPolitics (Diary) Friday, August 28th at 11:05PM EST (link)cars since 2006 which were Chrysler, Chrysler, GM, Chevy will not be buying any from anyone who deals with the unions. If workers want to wake up and hold their union representatives accountable for their actions and get back to just making money and supporting their families we may come back but I don’t see that happening. I will be buying Toyota in the future.
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Hear hear! Never another UAW car for me.
gensec (Diary) Saturday, August 29th at 2:51AM EST (link)UAW Big 3 cars have been among the cars I’ve bought over the years, but after the bailout spectacle I could never stomach that again. You can always find a non-UAW car that’s about as good a deal on price/quality/features if not a better deal. I thought about exempting Ford, since they didn’t take bailout money, but buying a Ford is putting money into the UAW’s hands.
If anyone here is considering buying a GM/Ford/Chrysler car, why not eliminate the middle man and just send contributions to the Democratic National Committee and ACORN?
Way ahead of y'all
acat (Diary) Saturday, August 29th at 5:30PM EST (link)My Tundra crew-cab 4×4 is a great truck, I’m very happy with it. The T-100 it replaced is still running around the Virginia hills somewhere… the guy I sold it to takes very good care of his cars!
I’m on my 3rd Camry – the first one (with a rust hole in the fender I could put my hand clear through and well over 120,000 miles) was sold to a teacher who drove it for a couple years, and my nephew is driving my 2nd one to and from college. Smart kid!
American made, Toyota engineering, happy cat.
Mew
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“All that is gold does not glitter, not all those who wander are lost”. –Tolkein
Good For Toyota....
americanmale Saturday, August 29th at 12:07AM EST (link)I’ve only owned american cars for the last 20 years. That won’t be the case in the next 20. To buy a GM or a Chrysler would be voting for socialism….and I just can’t do that. I now want GM and Chrysler to FAIL.
The government can’t even win the Cash For Clunkers race….even when they wrote the rules. The government owners are useless. Fire the government.
Oh, and Toyota only used that plant to assemble the cars….thereby avoiding huge import/excise taxes. The same logic applies in the south.