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.



Permalink | Email this | Comments

Read More...