Toyota Stuck With NUMMI Closure Costs
Although Toyota was a 50% stakeholder in the NUMMI facility in Freemont, California, it may end up carrying 100% of the closure costs. The LA Times reports that Liquidation Motors, the company which took over GM’s assets won’t fund any of the severance pay or other expenses to the closure of NUMMI. “Motors Liquidation is not contributing at all” (to the closure costs), said Tim Yost, a spokesman for Detroit-based Motors Liquidation Corp., “We don’t believe there will be a requirement for us to do so.” Paul Nolasco, a Toyota spokesperson in Tokyo said that “Although we cannot provide any figures at this time, it is something for which we plan to make allowance in our earnings report.” Toyota was planning for a smaller-than-expected loss for this financial year, and the addition of these extra costs (should they happen) will affect the company and its stock price. On the other hand, it also puts Toyota in the exact same boat as the American taxpayers.
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Which prior "partner" hasn't been totally screwed over by, then tossed aside like so much trash, by GM? Warning to all businesses worldwide; if you work with GM, you should be aware of what's likely to happen. They'll wine and dine you then rape you then steal from you then kill you if they can. If it were a human being, they'd be in a penitentiary for multiple life terms, since they are a repeat offender, as well. Here's a reminder of a few from the last 35 years or so. Isuzu. Suzuki. NUMMI (Toyota). Daewoo's creditors (when they bought it for pennies on the dollar). GMVAZ (yes GM had partnered with the manufacturers of Lada for awhile).* Subaru (ironically, now safe in the arms of Toyota). Saab. US Taxpayers. GM stock and bondholders. Magna/Sperbank/German taxpayers. *GM met its match with the Russians, however, and I believe they were the screwees as well as the screwers in GMVAZ. Something Renault is now finding out about with VAZ, to their cost.
This also begs the question: why would any non-evil minded individual wish to perpetuate this company by purchasing anything from them? Looking at it from a completely practical point of view, if an automobile or truck is the second largest purchase that most families ever make (and the largest, for folks who rent instead of having a mortgage), why would one consider purchasing a car from a company which has already proven to be run so poorly that it went from #1 in the world to bankruptcy and taxpayer rescue? Surely the likelihood is that when the political winds change, "paybacks will be severe" and GM will be left to die on the vine. Then, try to find genu-ine GM parts and try to get your warrantee honored. Good luck with that. (And yes, I do know the Prez "promised" to honor GM and Chrysler warranties - to which I would respond - and you're naive enough to believe a politician about protecting YOUR interests and pocketbook?!)
The Russians and Italians obviously have GM's number, Mirko. You're right. GM was the screwee with the Fiat deal. Can't wait to see how SAIC-GM plays out....