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.

If you liked the article, share on:

Topics: toyota, gm, factory

Comments

Recommended

Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 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