Toyota to restart US auto plant, draws UAW ire

Yahoo News ^ | June 18, 2010 | Dan Strumpf and Tom Krisher

[EBH]

Toyota's announcement that it will resume construction of a car factory in Mississippi was a much-needed piece of good news for both the state struggling with persistent employment and the automaker trying to recover some goodwill after a recall crisis bruised its reputation.

But the decision drew fire from America's largest auto union, which accused Toyota of shifting production from a union plant to a nonunion facility.

Toyota promised to hire 2,000 workers at its nearly complete factory in Blue Springs, Mississippi, and start producing Corolla sedans by the end of next year.

The plant has been on hold since late 2008, when Toyota suspended construction as the economy fell apart and sales of new cars and trucks collapsed in the U.S.

But Toyota's decision to build Corollas there comes just weeks after announcing the sale of a California plant that also built the compact sedans.

To the United Auto Workers Union, the key difference was the California plant was unionized, while the Mississippi plant -- like the rest of Toyota's U.S. factories -- isn't.

[TMA62]

“....The California plant, called New United Motor Manufacturing Inc., or NUMMI, was a joint venture with General Motors Co. Toyota closed its doors in April after GM pulled out of the venture under bankruptcy protection last year.”
___________________________________________________________

This probably figured into the move. After Gov’t Motors pulling out of the factory, Toyota would likely assume more if not all of the operating and financing costs. It would have been by far the most expensive factory for Toyota to operate. Smart move for them to leave.....and to tell the UAW to go to San Fransico.

[Mr. Lucky]

You coulda been a poet.

[Grampa Dave]

For several years, we have owned Toyota Corporate Notes (high order bonds) that stretch out to 2032. We get a good interest rate and the notes held their value until the meltdown. They went into the red a fair amount re face value if we had sold them at that time.

Interesting, since the so called safety bs about Toyotas/Lexus, their corporate notes came back out of the red and have done very well if we had to cash them in today.

This news has increased the sell value of the notes from .74% to 1%.

$crew the unions and any corporation’s bonds/stocks or any mutual fund run by elite liberals

[gunner03]

Add Bethlehem, Pa steel to that picture of union “progress”.

[stephenjohnbanker]

” $crew the unions and any corporation’s bonds/stocks or any mutual fund run by elite liberals “

Amen, brother!

[j-damn]

*I am curious. What is starting pay for a autoworker in Mississippi vs. California ?*

I am curious: what is the cost of living in Mississippi vs. California?

[woodbutcher1963]

$58,240 / year is not bad for starting pay in Miss. I would think.

[Dead Eye Lane]

Thanks. I thought it was a strange relationship in the first place.

[expat_panama]

"Human need..."

--as opposed to 'inhuman' need?  What they're really referring to is "from each his abilities and to each his needs."