Posted on 08/28/2009 6:44:33 AM PDT by laotzu
FREMONT, Calif. — Toyota Motor Corp. officially confirmed Thursday that it will relocate production of the Tacoma pickup from a (unionized) plant in Northern California to its state-of-the-art (non-unionized) manufacturing facility in San Antonio by next summer.
The announcement came hours after the Japanese automaker ended its relationship with a joint venture plant in the San Francisco Bay area as part of an effort to reduce excess production capacity at plants around the globe and return to profitability.
As part of the plan to shift Tacoma production to San Antonio, Toyota will stop making vehicles at the New United Motor Manufacturing Inc. plant — its first manufacturing facility in the United States, which started in 1984 as a 50-50 business deal with General Motors — in March 2010.
San Antonio and Bexar County officials estimate 100,000 Tacomas, about 50,000 less than NUMMI is capable of producing at peak capacity, will be pumped out annually following a $100 million retooling at Toyota's San Antonio campus.
The Tacoma line not only will diversify the plant with a second vehicle but also is expected to add as many as 1,100 new jobs to the facility over time and will rev its 21 on-site suppliers back up to capacity and employ hundreds of new workers.
Temporary plant workers who had been laid off in San Antonio or those who applied for Tundra work and didn't get the job could be first in line for the new positions, Bexar County Judge Nelson Wolff said.
It wasn't immediately clear if Toyota would offer jobs to any of the 4,700 NUMMI workers who will be unemployed next year as a result of the plant's closure.
“This is really a big shot in the arm, especially when you consider that the jobs multiplier is five, and I think that is conservative. By next year, we'll be running pretty darn strong. We're already doing well relative to other parts of the country,” Wolff said.
Toyota's decision to end its 25-year relationship with the NUMMI plant, which also produces the Corolla, came nearly two months after GM said it was pulling out of the joint venture.
Since then, rumors had swirled about what Toyota would do, but industry observers had speculated the auto giant would move production to other plants.
It marks the first time the Japanese automaker has moved to shutter a plant, either at home or abroad.
Analysts say Toyota's decision to pull out NUMMI is a smart move for the company in the long run, as sales continue to dwindle amid the global economic downturn.
In San Antonio, local and state leaders rejoiced at the announcement, which will bring a much needed shot in the arm to the South Side plant.
“San Antonio is emerging as an economic powerhouse. This demonstrates the talent of the work force and the low cost of doing business in San Antonio, as well as a high level of public and private cooperation,” Mayor Julián Castro said.
“This is a confirmation the community knows how to solve the manufacturing problem,” chamber CEO Richard Perez said. “The work force has proven its mettle to produce trucks Toyota is proud of. It's a special day.”
But in California, the move amounts to a supreme body blow to a state already reeling from financial and economic woes.
Thousands of production workers, each of whom earn about $65,000 annually at the West Coast's lone auto plant, stand to lose their jobs and a network of more than 1,100 California-based suppliers that employ tens of thousands of workers will be affected. California officials estimate those suppliers employ about 18,800 workers who add a total of $904 million annually to the state's payroll.
Employees at the California plant weren't notified until Thursday afternoon at a “state of the company” meeting.
Toyota executives said the decision was difficult “given the impact on employees and suppliers in California,” Ken Fukuta, president of Toyota Motor Manufacturing Texas, said in a statement.
“I don't think it's started sinking in yet,” said Ken Villegas, who was one of the first 50 employees hired at NUMMI. “When it starts sinking in, the finality is going to affect different people in different ways.”
The workers were told more information would come at a later date and that union management is negotiating the next phase of discussions.
“No one got boisterous or angry,” Villegas said. “It's not like we didn't know it was coming. The writing has been on the wall.”
(snip)
Yeah. Good luck with that. I suggest they strike.
I love a happy ending.
That move makes good sense
Good news, right? Moving away from tax kooky California to good ole Texas?
It shows that low taxation and high incentivization IS the path to growth and prosperity. Good for Toyota. Your employees are going to love San Antonio. I recommend hitting the County Line Barbecue on the Riverwalk as soon as you get there.
As a Texan, I have an allegence to my adopted state, even though I don’t live there anymore. If you haven’t lived in Texas, you wouldn’t understand. I would not give my life for most of the states I have lived in; but I would for Texas.
San Antonio is an amazing town to me. Military bases, financial institutions, Sea World, 6 Flags, Insurance Institutions and not a whole lot of industry. I’d drive around the city (which is a long drive, with 5-6 Million souls) and see very little large manufacturing companies, compared to other large cities I have seen.
Glad to see Toyota go to Texas. Texas has a LOT of trucks on the road, no state income tax, and a need for jobs that a company like Toyota will bring.
Texas is the new California. I mean the California that used to be. which the liberals wrecked with their social policies.
BWAAAHAHAHAHAHAHA. Free market strikes again.
Maybe the Kalif Rats and the RINO gov can rush a law through denying Toyota the ability to close the plant.
Great news for American business. That is the only way to answer an out of control government. The voters in CA. keep electing tax and spenders (Boxer, Feinstein, Ahhnold et al) and now they see the consequences.
If I recall my business classes, this JV was misguided from the beginning. The Japanese thought they could bring their management style to the US and that it could work even with UAW workers. GM was hoping to learn so sort of mystic Japanese production technique to improve production. They both learned very quickly that the UAW would never permit thinking outside the box. The Japanese went on to non-unionized Sun Belt states and GM continued to take it in the rear by the UAW and the Government.
Toyota is a big fan of unions, eh? My next truck will be a Toyota. American made, non union, not run by Obama&Co.
My dream to one day say “I’m from Texas.”
Amen!
The union thugs can come to the table; the kiddie’s table out in the back yard, next to the sandbox. Schmucks.
One less shop for Gettelfinger and crew.
Obama is going to start pushing for national card check.
Pretty much sums it up and bodes ill for Kalifornia.
Not to worry though, as I imagine the clueless, Leftist, Legislators and with the blessing of the RINO-in-Thief, Ahhnold, will look to raise taxes somewhere else to make up for the revenue shortfall and increased unemployment costs associated therewith.
B-bye, to the once Golden State; hello, Left Coast, Rustbelt.
California will have to hire several thousand new state employees so their taxes will cover the revenues lost from this Toyota move.
Is there a list of companies that have escaped from California?
I bought a Tundra a year ago and really like it.
The dealer seemed to think they were going to enter the 3/4 and 1 ton market also.
Toyota came, looked, and liked what they saw. I need add that Tejanos are a different sort from those who are overrunning California. The only part of the state that is like southern California is the ElPaso area and that is a long way from the most population centers of the state. On the other hand, Laredo and the Valley are beginning to be impacted by the scum who control Mexico.
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