Just weeks after General Motors Corp.
exited the Northern California New United Motor Manufacturing Inc. joint venture, partner Toyota Motor Corp. over the weekend said it might have to do the same.
Toyota, which invested in the Freemont-based plant 25 years ago and currently manufactures Corolla sedans and Tacoma pickups there,
said late Friday that it was considering closing Nummi. The plant, which was the Japanese automaker's first foray into manufacturing in North America back in the 1980s, has been plagued by a reputation for high costs.
Toyota in a statement said it is working to determine whether "it can be economically feasible to contract with Nummi without GM."
Industry sources say there is tension between Toyota's Japanese leadership -- specifically new president Akio Toyoda, who pledged not to close any plants -- and U.S. leadership who would like to shift production to lower-cost facilities. The public talk could also be a warning shot fired at the United Auto Workers union, which has a contract with Nummi that is separate from its deals with the three U.S. automakers.
That UAW contract expires in August. Many believe Toyota is seeking considerable concessions to keep what would be its only unionized plant open. Absent a new labor deal, California's last auto manufacturing site could soon be history. -
Lou Whiteman
Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman
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