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Report: NUMMI workers to get $19 million in aid

Chris Shunk — Wed, 09 Jun 2010 17:30:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Toyota, Earnings/Financials, Tesla

When Toyota shuttered its NUMMI plant for good at the end of March, over 4,700 workers lost their jobs. The Japanese automaker softened the blow of those lost jobs by forking over $281 million in aid, or about $60,000 for every worker at the plant. Daily Markets now reports that the federal government is stepping in to add a a bit more scratch to help the NUMMI workforce find new work. The $19 million emergency fund cash infusion will be used for training and other support.

Some former NUMMI workers are hoping to again work at the Fremont, California facility if Tesla commits to making the Model S or some other electric vehicle there in the next couple years. Details have been sketchy regarding Toyota's new relationship with Tesla, and whether the plant will be used to produce the vehicle.

[Source: Daily Markets | Image: Justin Sullivan/Getty]

Report: NUMMI workers to get $19 million in aid originally appeared on Autoblog on Wed, 09 Jun 2010 17:30:00 EST. Please see our terms for use of feeds.

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Full details on Tesla/NUMMI deal disclosed

Sam Abuelsamid — Tue, 01 Jun 2010 10:58:00 EST

Filed under: Plants/Manufacturing, Toyota, Tesla, Electric

Tesla Model S - Click above for high-res image gallery

Tesla Motors announced last week that it was definitely going to build ist Model S at the former NUMMI factory in Fremont, California. Or it might not. This isn't the first announcement about where this car might be produced. That was way back in February 2007 when the car was still being referred to as Whitestar and it was planned to be built in Albuquerque, New Mexico. Along the way it was also going to be built in San Jose and most recently southern California.

The big surprise press conference held last week with CEO Elon Musk, Arnold Schwarzenegger and Toyota CEO Akio Toyoda caught everyone completely by surprise and apparently almost none of the i's have been dotted, nor have many t's been crossed. At the time, Musk announced that Tesla would be buying one of three parcels that make up the NUMMI facility, that being the one that includes the actual building facility. Regulatory documents filed by Tesla this week in advance of its upcoming initial public stock offering indicate that Tesla is to pay Toyota $42 million for the building out of its IPO proceeds. That price, however, does not include production equipment, which may go a long ways toward explaining why Tesla got such a "good deal" compared to the $130 million that Fisker paid for a closed General Motors plant in Delaware.

If Tesla wants any of the equipment left behind at the NUMMI facility, it will have to buy that separately at an upcoming auction. Of course, it won't actually need most of it for some time since the company only plans to build about 20,000 cars per year in a plant with a capacity 25 times that.

The product collaboration agreement between Toyota and Tesla is also just that so far, an agreement to collaborate with no additional details specified right now. And that $50 million that Toyota is to invest in Tesla? That will only happen if the IPO actually happens in 2010 and it will be at the offering price. So Toyota's investment may garner it either more or less stock than the nine percent that Daimler got last year for the same price.

Gallery: Tesla Model S in motion

[Source: Green Car Advisor]

Full details on Tesla/NUMMI deal disclosed originally appeared on Autoblog on Tue, 01 Jun 2010 10:58:00 EST. Please see our terms for use of feeds.

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Reuters: UAW pressuring Tesla/Toyota to hire union workers at former NUMMI plant

Steven J. Ewing — Fri, 21 May 2010 15:58:00 EST

Filed under: Plants/Manufacturing, Toyota, UAW/Unions, Tesla

Yesterday, Toyota and Tesla announced that the two companies would be collaborating on electric vehicle development. Tesla will be taking over the NUMMI factory in Fremont, California, which was recently closed. Now, the United Auto Workers is urging Toyota to hire union workers to operate the plant, giving jobs back to the people who were rendered unemployed after the NUMMI shutdown.

UAW president Ron Gettelfinger has issued the following statement:

"Our union's hope is that this venture will give first hiring preference to former NUMMI employees who are already trained and highly skilled."

As you'll recall, NUMMI was closed at the beginning of April after the Toyota/General Motors joint venture fizzled, a development that left roughly 4,500 union workers unemployed. Thus, it only makes sense that the UAW would be fighting to reinstate these workers' jobs now that Tesla plans to build its Model S sedan at this facility.

[Source: Reuters | Image: Justin Sullivan/Getty]

Reuters: UAW pressuring Tesla/Toyota to hire union workers at former NUMMI plant originally appeared on Autoblog on Fri, 21 May 2010 15:58:00 EST. Please see our terms for use of feeds.

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BREAKING: Toyota and Tesla to partner on EV production in California

Sam Abuelsamid — Thu, 20 May 2010 20:27:00 EST

Filed under: Sedan, Plants/Manufacturing, Toyota, Tesla, Electric

Tesla Model S - Click above for high-res image

California governor Arnold Schwarzenegger, Tesla CEO Elon Musk and Toyota CEO Akio Toyoda held a joint press in Palo Alto, California to announce that the two companies would be collaborating on electric vehicle development and production, with Tesla will taking over the recently closed NUMMI factory in Fremont, CA to produce the Model S sedan.

Toyota will invest $50 million for a private placement of Tesla common stock and the state of California will provide a sales tax abatement to Tesla for capital equipment expenditures to tool up the plant. Musk estimated that the abatement will amount to about $20 million over the next several years.

According to Musk, production of the Model S will bring about 1,000 employees back to the NUMMI plant to produce about 20,000 cars a year at first, and as the facility expands - possibly to include the production of more models - it could employ up to 10,000 workers. Musk revealed that some employees have already been rehired, but was non-committal on the subject of union representation. NUMMI was the only Toyota plant in North America that was unionized.

An additional benefit to Tesla from this deal is that it will be able to take advantage of the Toyota production system and possibly some of Toyota's suppliers. That's sure to help Tesla avoid many of the logistical problems that hampered early Roadster production and costs.

Production of the Model S is still planned to start in 2012 and Musk said more advanced prototypes would be revealed later this year. No decisions have been made yet about additional vehicles to be produced at the plant which previously had a capacity of more than 300,000 vehicles a year.

The deal for the NUMMI plant leaves Downey, CA jilted at the altar with the city's mayor "feeling stabbed in the back by Tesla." The Toyota deal apparently came together very quickly and Musk acknowledged that he would still like to work with Downey, perhaps for a future Space-X facility. Hit the jump for all the details.

Gallery: Tesla Model S in motion

[Source: Toyota]

Continue reading BREAKING: Toyota and Tesla to partner on EV production in California

BREAKING: Toyota and Tesla to partner on EV production in California originally appeared on Autoblog on Thu, 20 May 2010 20:27:00 EST. Please see our terms for use of feeds.

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Report: Displaced NUMMI workers unhappy with severance package effort from GM, Toyota

Zach Bowman — Tue, 13 Apr 2010 08:59:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, GM, Toyota, Earnings/Financials, UAW/Unions

This didn't take long. Hot on the heels of NUMMI shutting its doors for good, reports are emerging that the plant's former workers aren't satisfied with their severance packages. Originally, employees were slated to see around $54,000 on average, depending on seniority. The newest workers were headed home with $21,000 in their pocket, while those who had put in the most years were walking away with closer to $68,000.

But that was before the last round of negotiations between Toyota, General Motors and the UAW. According to new report, under the new deal, seniority no longer factors into severance compensation. As a result, former workers at the NUMMI plant will see $21,000 on average.

While fingers are pointing every which way when it comes to who's responsible for the plant closing and the cut in severance pay, most of the blame has landed squarely on GM, and Toyota has handed over around $250 million for severance packages, while Detroit hasn't offered up a dime.

[Source: Just-Auto - Sub. Req. | Image: Justin Sullivan/Getty ]

Report: Displaced NUMMI workers unhappy with severance package effort from GM, Toyota originally appeared on Autoblog on Tue, 13 Apr 2010 08:59:00 EST. Please see our terms for use of feeds.

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NUMMI Goes Numb: Last vehicle rolls off the line at storied CA joint-venture plant

Zach Bowman — Thu, 01 Apr 2010 16:23:00 EST

Filed under: Budget, Hirings/Firings/Layoffs, Plants/Manufacturing, GM, Pontiac, Toyota, Earnings/Financials, UAW/Unions

This morning saw the very last car roll off of the NUMMI assembly line. At 9:40 a.m., a red Toyota Corolla drove off under the watchful eyes of workers, white-collars and union leaders. Toyota and General Motors have been cranking out cars and trucks at the facility since 1984, but GM backed out of the partnership in June of last year as part of its restructuring program. Toyota announced it would be closing down operations soon after, and, true to its word, things shut down this morning.

Mercury News is reporting that worker reactions were varied, with some heading off to local bowling ~~allies~~ alleys [Thanks, Wobbly_ears!] while others fought to hold back tears. And what of that last car? Word has it the Corolla will eventually find its way to a museum somewhere in Japan.

[Source: Mercury News | Image: Justin Sullivan/Getty]

NUMMI Goes Numb: Last vehicle rolls off the line at storied CA joint-venture plant originally appeared on Autoblog on Thu, 01 Apr 2010 16:23:00 EST. Please see our terms for use of feeds.

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This American Life tells the NUMMI story

Dan Roth — Wed, 31 Mar 2010 11:40:00 EST

Filed under: Etc., Hirings/Firings/Layoffs, Plants/Manufacturing, GM, Toyota

One of the highest-rated shows on National Public Radio is This American Life, which does deep-dives into weekly themes, exploring subject matter from different angles while always leaving the listener enriched. This past Sunday, the show spent an hour going over the Toyota/General Motors joint venture in California, the NUMMI facility that will be shutting down this week.

On the eve of its closure, TAL takes a look back at what brought about the joint venture in the first place. Things were bad at the former Fremont GM plant, so bad that the company closed the factory. Shortly after the closure, GM and Toyota decided to learn from each other and implemented the Toyota production system in a U.S. plant for the first time.

Ira Glass and Frank Langfitt turn the lens of radio upon the outcome of that move, and what it meant for the workers and industry at large. Head on over to This American Life to download the show. That is, if TAL's not already on your required listening list. Thanks to everyone for the tips!

[Source: This American Life | Image: Justin Sullivan/Getty]

This American Life tells the NUMMI story originally appeared on Autoblog on Wed, 31 Mar 2010 11:40:00 EST. Please see our terms for use of feeds.

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Toyota commits $250 million to aid with NUMMI transition

Steven J. Ewing — Wed, 03 Mar 2010 18:31:00 EST

Filed under: Plants/Manufacturing, Toyota, UAW/Unions

The present Toyota recalls have been garnering a vast amount of media attention, but no one has forgotten about the automaker's earlier decision to end its production contract with California's New United Motor Manufacturing Inc. (NUMMI). Just recently, Toyota issued a press release stating it will commit $250 million to support the NUMMI plant closure that, as we reported earlier, will mean a direct loss of 5,400 jobs and up to 50,000 jobs at suppliers and other supporting businesses. Don't blame Toyota entirely, however, as the plant was originally established as a joint venture between General Motors and Toyota, but GM pulled out first during its time in bankruptcy last summer.

Toyota says its financial support will aid in providing bonuses to both salaried and hourly NUMMI employees at the plant. The funding, however, is still subject to current negotiations between the UAW and NUMMI. Jim Wiseman, Group Vice President of Toyota Motor North America issued this statement:

"Although NUMMI is an independent company, Toyota has made a significant financial commitment to help ensure that production continues as smoothly as possible and that team members receive transition support. We hope that NUMMI and the United Auto Workers will reach an agreement soon, so that NUMMI's UAW team members can benefit from the transition support that we have committed to funding."

NUMMI currently produces both the Corolla and Tacoma for Toyota. Earlier reports state that Corolla production will be moved to the automaker's Cambridge, Ontario factory, and the Tacoma will be shifted to Toyota's San Antonio, Texas facility. Toyota's production contract with NUMMI officially ends in just a few weeks on April 1st, which is no joke to the workers who won't be building the cars the next day. Follow the jump to read the official press release.

[Source: Toyota | Image: Justin Sullivan/Getty]

Continue reading Toyota commits $250 million to aid with NUMMI transition

Toyota commits $250 million to aid with NUMMI transition originally appeared on Autoblog on Wed, 03 Mar 2010 18:31:00 EST. Please see our terms for use of feeds.

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REPORT: Production of Toyota Corolla transferring from NUMMI to Ontario

Sam Abuelsamid — Sat, 29 Aug 2009 16:30:00 EST

Filed under: Sedan, Plants/Manufacturing, Toyota

2009 Toyota Corolla - Click above for high-res image gallery

As even mighty Toyota finds itself with excess production capacity in North America and elsewhere, the Japanese automaker has finally made the decision to shutter an assembly plant. The loss of the Pontiac Vibe means that it wasn't viable to keep the NUMMI factory in Fremont, CA operating on its own, but the rest of the products it builds are still in demand to varying degrees.

We've already heard that production of the mid-size Tacoma pickup truck would be consolidated with its big brother the Tundra in San Antonio TX. The other remaining product from NUMMI was the Corolla sedan. The volume that had been produced in California will reportedly now come out Toyota's Cambridge, Ontario factory where the compact car is already built. It's not known at this time if the move will result in any additional jobs at the Cambridge plant. Thanks for the tip, Dave!

Gallery: 2009 Toyota Corolla

[Source: Montreal Gazette]

REPORT: Production of Toyota Corolla transferring from NUMMI to Ontario originally appeared on Autoblog on Sat, 29 Aug 2009 16:30:00 EST. Please see our terms for use of feeds.

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REPORT: NUMMI workers demonstrate over plant's potential closing

Chris Shunk — Mon, 24 Aug 2009 10:31:00 EST

Filed under: GM, Toyota, UAW/Unions

Toyota has never closed a U.S. assembly plant, but the suddenly struggling Japanese automaker has said that it would shudder the NUMMI factory in California, the only auto plant in the state, by next March. The upcoming closure isn't a big surprise since General Motors was allowed to bow out of its half of the joint venture project with Toyota during bankruptcy, giving Toyota full responsibility for the California plant. And since the Pontiac Vibe is no longer being made at the facility, capacity has dropped to a reported 60%, making the facility unprofitable at a time when Toyota is losing money.

The closure of the plant means, of course, that its 5,300 employees will soon be without a job. To protest the closure of NUMMI, an estimated 1,000 workers turned out to demonstrate in front of the facility last week. The union-organized workers are in a tough position, too, since their UAW contract expired last week. The contract was indefinitely extended, but either party can cancel it with five days notice. And with unemployment at 11% in California, finding a new job will be no easy task.

[Source: The Detroit Bureau | Image: Justin Sullivan/Getty]

REPORT: NUMMI workers demonstrate over plant's potential closing originally appeared on Autoblog on Mon, 24 Aug 2009 10:31:00 EST. Please see our terms for use of feeds.

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REPORT: Toyota to end production at NUMMI in March

Jeremy Korzeniewski — Mon, 17 Aug 2009 18:40:00 EST

Filed under: Plants/Manufacturing, Toyota

2009 Toyota Matrix - Click above for high-res image gallery

Word 'round the campfire (okay, by way of the Asahi Shimbun newspaper in Japan and via Reuters) is that Toyota will end production at its NUMMI plant in California in March of next year. Though a spokesperson for the automaker claims no final decision has been made about an official closing of the plant, reports indicate that suppliers have already been notified about plans to shutter the assembly lines early next year after more than a quarter century in operation.

General Motors' only current contribution to the plant in California is the Pontiac Vibe, which officially ends production this month. Toyota is said to be moving production of the Tacoma pickup to its plant in San Antonio, Texas, and final assembly of the Corolla will reportedly join the Matrix, its hatchback sibling, in Ontario, Canada and a factory in Japan.

Gallery: 2009-2010 Toyota Corolla Matrix

[Source: Reuters]

REPORT: Toyota to end production at NUMMI in March originally appeared on Autoblog on Mon, 17 Aug 2009 18:40:00 EST. Please see our terms for use of feeds.

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Dampened: Pontiac Vibe production ends this August

Dan Roth — Mon, 22 Jun 2009 09:27:00 EST

Filed under: Plants/Manufacturing, Hatchback, GM, Pontiac

It was originally thought that the Vibe would be the terminal Pontiac, but now that we've learned that the Excitement runs out of the NUMMI plant by the end of August we're not so sure. While the curtain will drop on the Vibe, General Motors hasn't totally ruled out future co-production with Toyota at its joint venture in Fremont, CA.

The Vibe is the twin of Toyota's Matrix, and tended to earn Pontiac a lot of "it's a good GM car, because it's actually a Toyota" commentary, frustrating to no end in the halls of the RenCen, we're sure. Check out the full press release after the jump.

Continue reading Dampened: Pontiac Vibe production ends this August

Dampened: Pontiac Vibe production ends this August originally appeared on Autoblog on Mon, 22 Jun 2009 09:27:00 EST. Please see our terms for use of feeds.

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Toyota denies rumors of giving aid to GM

Jeremy Korzeniewski — Thu, 30 Oct 2008 14:31:00 EST

Filed under: Budget, Hybrid, GM, Toyota, Rumormill

Rumors of a meeting between GM CEO Rick Wagoner and top officials from Toyota in Japan has been denied. This shouldn't come as much of a surprise, considering that it's GM's policy not to comment on such matters, but Toyota has no such policy and has also denied that such discussions have or will take place. The Japanese Kyodo News had started the rumors, which specifically suggested that Toyota could offer GM hybrid technology and assistance in the assembly of small cars. That seemed rather odd, especially since GM has its own sophisticated Two-Mode hybrid system that was developed along with Chrysler and BMW. Toyota and GM also already share a factory in California that builds relatively fuel efficient compact cars, so any deal between the two automakers would just be an extension of their current agreements. What's more, General Motors is also in talks with Cerberus to make a major play on Chrysler's automotive operations, so it would seem to be an inopportune time to discuss major deals with other automakers as well.

[Source: Reuters]

Toyota denies rumors of giving aid to GM originally appeared on Autoblog on Thu, 30 Oct 2008 14:31:00 EST. Please see our terms for use of feeds.

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Are GM and Toyota working on a hybrid together?

Jonathon Ramsey — Tue, 27 Nov 2007 17:02:00 EST

Filed under: Budget, Hybrid, Green, Plants/Manufacturing, Hatchback, GM, Toyota

The evidence: rumor had it at the LA Auto Show that customers would soon have the option of buying a hybrid Toyota Matrix and a hybrid Pontiac Vibe; the 2009 Pontiac Vibe is made at NUMMI, a GM-Toyota joint venture manufacturing plant where the Matrix is also made; Toyota's already got its hybrid synergy drive -- so is GM working on a hybrid with Toyota, or will they use Toyota's hybrid tech to work in the Vibe?

The evidence is circumstantial, certainly. But it's possible. Lutz said at the recent Reuters Auto Summit that, no matter what GM thinks of hybrids, the company made a mistake letting Toyota get so far ahead with hybrids such that now the Japanese brand has become practically synonymous with hybrids and is perceived to be atop a green moral high ground. True, there's the Volt, and GM might not be doing anything with Toyota at all and it could just be a rumor. Or GM could surprise us with something completely new -- it wouldn't be the first time.

[Source: AutoblogGreen]

Are GM and Toyota working on a hybrid together? originally appeared on Autoblog on Tue, 27 Nov 2007 17:02:00 EST. Please see our terms for use of feeds.

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