Official: Toyota to End NUMMI Contract in March 2010

Confirming reports that emerged out of Japan earlier this month, Toyota has announced it will end production of its vehicles at the New United Motor Manufacturing Inc. plant in Fremont, California.  The decision follows weeks of uncertainty about the future of the plant after General Motors's withdrawal from the joint venture during its bankruptcy proceedings earlier this year.

"After the decision by General Motors to withdraw from the NUMMI joint venture, Toyota conducted a thorough review of its alternatives in light of current and anticipated market conditions," said Toyota Motor Company Vice President Atsushi Nimi.  "Based on this review, we have determined that over the mid- to long-term, it just would not be economically viable to continue the production contract with NUMMI.  This is most unfortunate, and we deeply regret having to take this action."

"We remain strongly committed to maintaining a substantial production presence in the U.S.A. and North America," Nimi said.  "To that end, we will consider moving additional Corolla production back to North America over time."

Toyota's decision will eliminate about 4500 jobs in California, a state already pummeled by a deep recession.  United Auto Workers President Ron Gettelfinger lamented Toyota's move to cease production at NUMMI, Toyota's only union-run facility, after profiting from the U.S. government's "cash-for-clunkers" incentive.  The Toyota Corolla was the bestselling vehicle in the program.

"It's unfortunate the company chose to close a U.S. facility after benefitting so greatly from the federal cash-for-clunkers program, which is funded by U.S. taxpayers," Gettelfinger said in an official statement from the UAW issued yesterday.

"Over the past 25 years UAW members at NUMMI have dedicated themselves to building the highest-quality vehicles.  They deserve better than to be abandoned by this company, which has profited so richly from their labor, their productivity and their commitment to quality," Gettelfinger's statement read.

GM most recently manufactured the Pontiac Vibe at NUMMI, while Toyota produces the Toyota Corolla compact sedan and Toyota Tacoma pickup.  GM stopped making the Vibe this month and will not move production to another facility, as its product plan calls for the Pontiac brand to disappear by the end of next year.  Toyota will move production of the Tacoma to its San Antonio, Texas, truck plant, while Corolla production will be split between its plant in Cambridge, Ontario, in Canada and Japan.