Toyota in talks with GM to close NUMMI plant

Article by Christian A., on August 26, 2010

The fate of the New United Motor Manufacturing, Inc. (NUMMI) plant in Fremont, California, is still up in the air. Reuters reports that Toyota has begun talks with General Motors about dissolving the joint venture and a conclusion is expected by the end of the month. Possibilities include a liquidation or sale to another company.

Toyota has said that it could liquidate its stake, once GM cut ties to the operation during its bankruptcy last month, or buyout GM's stake and continue operating the plant alone.

Located in Fremont, California, the NUMMI plant produces the Toyota Tacoma and Corolla, and the Pontiac Vibe.

The plant's workers are represented by the UAW, which means they can earn up to about $28 an hour, while Toyota and GM competitors employ workers at other plants for closer to $15 or $20 an hour.

The high cost of labor at NUMMI won't help Toyota if it plans to be profitable by its next fiscal year, as Toyota North America chairman and CEO Yoshimi Inaba indicated earlier this week.

Inaba also warned the company was wary of the consequences closing the plant might have among consumers in its biggest market in the U.S.

Topics: toyota, gm, factory

If you liked the article, share on:

Comments

Recommended

Nissan revealed that the new 2017 Rogue Sport crossover will be priced in the U.S. market at $21,420. Specifically, this is for the front-wheel drive version of the Rogue Sport...
by - April 26, 2017
Remember the E30 BMW M3? Yes, the one from 1990. If you remember it right, it was also the company’s most iconic car and probably one of the best BMW...
by - April 26, 2017
Ferrari is cooking up something interesting for us. The last time they released the 488 GTB was two years ago, followed by a 488 Spider and several versions of it....
by - April 26, 2017
After launching the latest version of the BMW M550i xDrive, the German carmaker is now introducing its diesel counterpart -- the new M550d xDrive (G30/G31). Available either as a sedan...
by - April 26, 2017
A lot of news has been going around about the 2018 Dodge Challenger SRT Demon lately, and people are arguing whether the 840 horsepower vehicle by Fiat Chrysler should be...
by - April 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries