Toyota to Kill Entire NUMMI Workforce by Spring

Toyota announced in late August that it will shut down operations at the New United Motor Manufacturing Inc. (NUMMI) plant in California. According to a report by the Nikkei business daily cited by Reuters, the Japanese manufacturer plans to kill the entire workforce, meaning that 4,700 workers will leave the company by next spring.

An earlier report indicated that the NUMMI closure would affect around 50,000 jobs in the state of California, including suppliers and local businesses. Obviously, this attracted criticism from the UAW who described the decision made by the Japanese manufacturer as devastating and unfortunate.

"Toyota's announcement that it will close the NUMMI plant is devastating news for thousands of workers in California," UAW President Ron Gettelfinger said. "This is no time to close a highly successful manufacturing facility. California is one of the most important markets for Toyota," UAW Vice President Jimmy Settles added, saying the move is "illogical."

Toyota said the main factor that attracted NUMMI's closure was the high cost of the location which, in its turn, attracted high labor expenses.

“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 in August when announcing the NUMMI production halt.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories