Toyota: California's High Cost of Living to Blame for NUMMI Pullout

cars ^ | 8/28/2009 | cars

[wrrock]

Toyota said today it plans to shut down the NUMMI plant because of high labor costs, associated with California’s high cost of living, and not because the UAW represents workers at the plant.

“The UAW presence does not have a direct impact on the decision,” Executive Vice President Atsushi Niimi said in conference call today. “California is a high-cost location,” Niimi said.

[headstamp 2]

Bubye.

[BipolarBob]

Good for them. Maybe the message will get out - high taxes have consequences. Along with vote the bums out.

[jessduntno]

Pulling a small business out of CA isn’t going to be easy either...but we will...they wonder why they are going broke...

[P.O.E.]

Niimi talks about No More Nummi.

[Extremely Extreme Extremist]

Well, I guess the only solution is: MORE TAXES!!

[GonzoGOP]

The UAW presence does not have a direct impact on the decision

Unstated: But their high wage scales and political influence contributed to the high cost of living. Hence indirectly cause the pull out.

[Nervous Tick]

>> Toyota said today it plans to shut down the NUMMI plant because of high labor costs, associated with California’s high cost of living, and not because the UAW represents workers at the plant.

Wink wink nudge nudge

The UAW really screwed themselves on this one.

The big picture is, Toyota and GM collaborated on the NUMMI facility in part so Toyota, the master at Lean Manufacturing, could teach GM how lean mfg could improve their operations.

I’m not sure GM was a good student, with all those stubborn greedy union pigs in their workforce.

Kiss another opportunity goodbye, Gubmint Motors.

[ElephantinTexas]

Hello my FRiend. More info and comments here:

http://www.freerepublic.com/focus/f-news/2326423/posts

[HamiltonJay]

Unless you operate a business that relies on importing from the Pacific Rim, there is absolutely no justifiable reason to operate in California.

The costs of operating there are destructive.

[GOPsterinMA]

Well put!

[2Jedismom]

~cue music~

Vrei sa pleci dar nu ma, nu ma iei, Nu ma, nu ma iei, nu ma, nu ma, nu ma iei.

[kromike]

The costs of operating there are destructive.

But hey, at least Gaia is pleased by all those altruistic sacrifices at the Altar of Going Green.

[stephenjohnbanker]

California became a rotten place to do business. Get out if you can!

[This_far]

Maybe California can use the plant shut down as a carbon offset?

(I am sorry for those that will be out work and the ancillary business’s that will also close. I’ve been through it at a different GM plant — I left before closure)

[Huskrrrr]

Want to own small business in California? Easy, start with a large business.

[GeronL]

taxes & regulations

[headstamp 2]

“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.”

The writing was on the wall when GM bailed.

[jessduntno]

“California became a rotten place to do business. Get out if you can!”

We have a beautiful home and the climate is wonderful...this is breaking our heart. We are thinking TX, but trying to find something comparable will not be easy...

[riverdawg]

The Toyota-GM collaboration at NUMMI showed that it was possible to build high-quality cars with UAW workers, something that many people (including myself) once doubted. At the same time, it revealed that the biggest manufacturing problems at the Big Three companies were management-related. Nevertheless, it was ultimately high labor and regulatory costs in California that doomed NUMMI.