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JAPAN NEWS AND DISCUSSION

Toyota to make decision on California plant soon

Business Jul. 21, 2009 - 07:00AM JST ( 8 )

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8 Comments

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elbudamexicanoJul. 21, 2009 - 08:15AM JST

If Toyota pulls out of Fremont, California, I know many of my fellow Californians will be plenty of pissed off at Toyota! Let them try to pull out and then see the reaction of Californians, say like buying Nissans, Hondas etc..but not Toyotas!
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bdiegoJul. 21, 2009 - 08:24AM JST

Yeah right, by that logic Toyota should never have built those factories to begin with. The vast majority of people don't buy cars based on tantrums.
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ilcub76Jul. 21, 2009 - 08:54AM JST

The quality level of NUMMI is quite low compared to their plants in Indiana and Kentucky. I used make headlights for Toyota, and NUMMI would accept almost anything. It was all about the numbers of Tacomas and Corollas they were making.
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KwaabishJul. 21, 2009 - 10:06AM JST

Toyota should rid itself of the lone UAW stain it has in its North American operations, and as soon as possible.

The plant was already idle when Toyota revived its operations there with the creation of Nummi, and besides, there's also shared blame of GM deciding to discontinue Pontiac (thus ending the production of the Matrix/Vibe there).

It would be better to build Prius' and other fuel economical autos rather than the Tacomas anyway, and building them in Mississippi would create jobs there plus less chance of UAW contamination.
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sfjp330Jul. 21, 2009 - 10:40AM JST

Toyota currently builds 300,000 Tacomas and Corollas at Nummi. If Toyota stays, the state and probably federal will offer tax free or substantial concession on new equipment that will be installed at the plant for new Prius manufacturing. They have experience workers there, but the union salary is around $25-$30 per hour versus $15-$20 for non-union out of state workers, which result in additional $500 per car. This will require additional drastic concession to make it work.

This is a important decision for Toyota since California is the biggest market and they are close to distribution location. If you look from 2-3 years from now, and the economy grows, decision for Toyota to stay will be the right choice.
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sfjp330Jul. 22, 2009 - 03:18AM JST

Toyota has already spent over $300 million on construction at Blue Springs, Mississippi. They will eventually build Highlander and possibly Prius for the eastern U.S. market, based on economic recovery.
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zurcroniumJul. 25, 2009 - 01:42PM JST

Toyota saved this plant decades ago when GM ran it into the ground. It has been a huge success for both Toyota and GM, using the same workers that GM screwed over before Toyota came in to save the place. Hope Toyota continues the plant now without GM management losers involvement. Then the place could be number one in productivity.