By on March 3, 2010

A Toyota press release [via Marketwatch] reads:

Toyota Motor North America, Inc. (TMA) today announced that Toyota has committed $250 million to its contracted manufacturer New United Motor Manufacturing, Inc. (NUMMI) to fund transition support for NUMMI’s salaried and hourly team members. Toyota’s financial support is enabling NUMMI to offer bonuses to salaried and hourly team members who continue to produce quality vehicles for Toyota through April 1, 2010, when Toyota’s production contract with NUMMI will end. This funding is subject to ongoing negotiations between NUMMI and the United Auto Workers with respect to those hourly team members represented by the union.

[Hat Tip: PickupMan]

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21 Comments on “Toyota Pledges $250m For NUMMI Closure...”


  • avatar
    Ingvar

    So, how much will GM pony up with? It was a joint venture, right?

    • 0 avatar
      Richard Chen

      NUMMI got pawned off on “Old GM” or Motors Liquidation Co., so I believe their contribution would be about zero.

    • 0 avatar
      tced2

      Actually a better description would be that GM left their part of NUMMI with the old GM. NUMMI can get whatever it can from the old GM (which is nothing, they’re bankrupt). The new GM continues on. That’s what (reorganization) bankruptcy does for a company – the stuff they don’t want can be left behind.

  • avatar
    littlehulkster

    Countdown to people bashing the union workers for being angry that their jobs are being ended starts now.

  • avatar
    PickupMan

    Probably more to do with Toyota currying whatever positive press they can these days.

    Kind of difficult to bad-mouth them if you’ve just received thousands in retraining funds to help the job search.

    Not impossible, just more difficult.

  • avatar
    Robert Schwartz

    Well that will solve the SUA problem.

  • avatar
    BuzWeston

    Countdown commencing: Five, four, three, two, one, zero:

    The overpaid, undereducated, minimally skilled union workers had their run. They’ve destroyed the competitive advantage of American manufacturing, and it’s time for them to lose their jobs.

    From now on, if they want to earn that kind of money, get trained and get an education that matches the salary. If they’re unwilling to do that, they can go to McDonald’s. They’re hiring at minimum wage.

    • 0 avatar
      mikey

      36+ years on the plant floor at GM I’ve seen examples of the seven deadly sins. Sloth?….yeah it’s a fact. Not as much these days,but never as bad as it was portrayed in the media. Gluttony?…oh yeah, lots of it. No problem, them boys will croak,and leave more cash in the pension fund,for us folks that kept the pounds off. That brings us to “greed” sorry, guilty as charged.

      Believe it or not,some of us union types can read. Million dollar bonuses,a free car,a big office. Its in the papers everyday. I figured my compensation package,was just my share of the pie.

      Then there was the girl with the Daisy Duke shorts. Management had to tell her to cover up a bit. It kind’a disrupted the line. Watching her installing trunk mats could give “lust” a new meaning.

      Just ask any non UAW/CAW person thier thoughts are on an autoworkers wages and benifits.

      Trust me the big monster A.K.A “envy” will rear his ugly green head.

    • 0 avatar
      littlehulkster

      May I ask you exactly what it is YOU do for a living, Weston, and what the wage associated with it?

      If I had 3 guesses, all 3 of them would be IT.

      UAW workers make enough money to provide a life of dignity for themselves and their families, and if you think that’s wrong, I don’t know what to say to you other than to urge you to seek mental help.

    • 0 avatar
      John Horner

      Buz, check out the hiring statistics for last year’s new college grads. The old belief that a college education is the ticket to a decent paying job is certainly not true today.

  • avatar
    CatFan78

    GM walked away from NUMMI because Obama wasn’t concerned about the political fallout to democrats in California. Not only did GM leave first, but according to the press release, GM is contributing NOTHING to closing the plant. Of course us taxpayers will be paying for GMs share of the NUMMI closure. Toyota’s doing the right thing here.

    • 0 avatar
      SkiD666

      Couldn’t Toyota have done the ‘right thing’ and kept the plant open? I wonder how much they will ‘save’ by closing their only union shop in the states.

    • 0 avatar
      Mr Carpenter

      Gee, maybe if Toyota wasn’t being hobbled by the Powers That Be in a witch hunt, their sales would have not been falling and they might – just might – have relented and kept the NUMMI plant going…

      Sorry I just HAD to throw that in there.

      Tell you the truth, if I were Mr Toyoda, I’d place all of the rest of my future jobs for North American production in CANADA and would mothball the unfinished Mississippi plant until Jesus came back. And wouldn’t hire one single replacement or new hire in the USA until – well, until the current regime was gone, at the very earliest.

      That’d be MY “in your face” response to the witch hunt.

    • 0 avatar
      Steven02

      I think that would only add fuel to the fire Carpenter. Less people would probably want to buy Toyota’s if the jobs leave the country. GM gets the same flak for cars made in Mexico and Canada.

  • avatar
    tparkit

    The most keystroke-efficient way for me to help with the interpretation of this completely unsurprising development is to link to a couple of my previous comments:

    http://www.thetruthaboutcars.com/quote-of-the-day-were-not-finished-with-toyota/#comment-1590023

    http://www.thetruthaboutcars.com/whats-wrong-with-this-picture-the-uaw-is-looking-out-for-you-edition/#comment-1597865

  • avatar
    GS650G

    These are what we call Enlightened Workers, who have figured the situation out and are no longer fooled. They are also little more than bargaining chips in getting the UAW more cash for the coffers.

    Millions of people got sacked the past 3 years and didn’t get squat. Some got severance payouts but that doesn’t last. Most dusted themselves off, bought a new suit and learned how to interview for something else. And these were people that didn’t see it coming. “Either take charge of your career or someone else will.”

    NUMMI was doomed for quite some time. It would have been wise to start making plans long before the angry hall meeting and not have placed so much faith in a Union that is now an co-owner of GM. It’s the same story at all these plants, made worse by the housing crash and complete lack of opportunity.

    The 20 and 25 year veterans should have saved and invested some of their wages, kinda like the rest of us do. We know they made above average wages for these past years, was any put away?

    I loved that Union guy telling us how they had all these signatures and support from Detroit, St Louis, car shows, etc. He’s not a good liar. The best whopper was his assertion they could not go after GM because of the bankruptcy. Ron Gettlefinger owns a big chunk of that bankrupt company that still sells cars today. Do they need to take a percentage of the worker’s last check too? Greedy people. Just cut them a check and match Toyota’s offer.

    I feel sorry for the working people out there, CA is no longer the Golden State.

  • avatar
    rtx

    The NUMMI plant consistantly turned out high quality vehicles dating back to the Chevrolet Nova (Corolla with a bow-tie) days in the mid 80′s.
    The NUMMI plant would probably still be going today if not for the pull out of GM.
    The plant itself was getting dated and along with infrastructure demands huge amounts of $$$ needed to be spent to keep it going.
    Thanks in part to the congressional grilling of Toyota CEO Akio Toyoda and the media focus sales in the US have dropped. If there was ever any pressure for Toyota to build another plant to meet demand it is certainly gone now and sales of their products could be soft for some time.
    I wonder if the congressmen would have been so aggressive had the NUMMI thing not come to an end?

  • avatar
    sco

    heard on NPR that this $250M covers roughly 4900 workers, about $50K per head – how does this sound?

  • avatar
    BuzWeston

    @littlehulkster, What I do is irrelevant to this discussion. You’re trying to make an ad hominem attack.

    There is nothing dignified about being a union worker. In fact, anyone in a union should be ashamed of themselves. Unions border on criminal organizations that extort money from the companies they infest. Union workers haven’t the qualifications to earn the wages they get in an open market, so collectively they band together to threaten their employers and then the products they make must be priced too high to be competitive.

    So ultimately they always kill the goose that laid the golden egg. Plants close, companies move or go out of business, and cities die. Then the union workers sit on their front porches or hang out at the corner bar remembering the good old days when they had dental coverage for their whole family.

  • avatar
    Steven02

    Is this the first press release that has been posted on TTAC without any commentary? I thought I read on here how other sites weren’t as good because they just posted press releases from manufactures and call it news.


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