“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. 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,” Atsushi Niimi, TMC vice president said in a press release.
"We would like to thank all of those involved with the joint venture, such as the suppliers, the local community, the union, and most of all the talented employees, who have worked closely and cooperatively with Toyota to contribute to the success of this pioneering joint venture,” Niimi concluded.
Although Toyota promises to consider moving "Corolla production back to North America over time,” the news comes as a blow for those involved with NUMMI and has stirred both regret and criticism.
Initial estimates say Toyota's decision to kill NUMMI will affect 50,000 jobs throughout the state of California, including suppliers and local businesses. The study, conducted by "Friends of NUMMI", a group of families, workers, suppliers and local businesses that will be affected by the closure,
"In addition, the closure will lead to substantial losses in local and state revenues and employment taxes; it will increase property foreclosures which will lead to a drop in attendance in local schools due to affected families requiring relocation, and significantly increase the unemployment claims - significant concerns that California's struggling economy can't afford," the group said.
Reactions are expected throughout the days, so stay close for further updates.
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