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NUMMI Suppliers Shutdown Underway

As it seems there is no avoiding the closure of the New United Motor Manufacturing (NUMMI) facility on April 1, suppliers to the former Toyota-GM joint venture are beginning to wind down their operations.

Although the number of NUMMI suppliers to close after April 1 is larger, some of the most important ones to exit the automotive industry, according to Autonews, are Injex Industries (injection molds door panels, glove boxes), who will send home 387 employees; TG Automotive Sealing (thermoplastic and rubber seals), who will fire 204 employees; Johnson Controls (seats), who will lay off 321; Toyota Tsusho America (steel), who will lose 104 people; and TTM Technologies (circuit board), who will sent to unemployment lines 84 people.

Besides these (and others from suppliers) jobs lost as a result of the closure, NUMMI itself will be firing about 4,500 workers. Toyota and the UAW representing the workers have already agreed on a severance package, approved by vote by the UAW members, with each worker to receive $21,175, plus a supplemental payment based on years of service and attendance in the final days of production. On average, workers will receive $54,000.

A pessimistic estimate made by California leaders shows the closure of the facility will result in an overall loss of jobs in the state of 50,000, from both the plant and related businesses. The closure would make for the largest mass layoff in the current recession.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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