Last month we learned that GM would be ending its joint venture, New United Motor Manufacturing Inc., with Toyota. Toyota is now going to begin discussions towards dissolving the venture with the “Old GM.” Toyota has been examining the US market after auto sales have been on the down side. Toyota is carefully looking at their options for NUMMI.
Toyota has said that the labor costs are not competitive with other plants in the U.S. such as Georgetown, Kentucky. The UAW has said that part of the reason for the joint venture was to have American employees learn Toyota’s methods of production, which are more efficient.
California represents Toyota’s largest market in the United States. California senators and House members are communicating with Toyota to see is they can keep the plant from closing.
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