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Toyota "Not Profitable" in US

Sarah's picture

According to the Detroit News, Toyota's considering closing a California plant since GM dropped out of the joint venture. California needs more job losses, yeah.

Among the issues the company is considering in its re-evaluation process is whether to keep open the 25-year-old New United Motor Manufacturing Inc. assembly plant in Fremont, Calif. The plant, which employs 4,700 people, is a joint venture formed with General Motors, but the Detroit automaker recently withdrew from the pact during its stay in bankruptcy court.

"That put us in a very difficult position," Inaba said. "We are carefully evaluating all the options."

He didn't commit to a timetable for a decision on Nummi, but said a decision would be made "quite soon." He said Toyota hadn't received an incentive package from California yet.

The hourly workers at Nummi are represented by the United Auto Workers, and the contract expires next month. Inaba said the UAW contract "is one consideration, but not the single deciding factor."

Inaba noted that California is Toyota's single biggest market in the United States, and closing the factory would negatively impact its image there.

The company also is contemplating what to do with its Mississippi plant. Toyota has completed the structure, but not moved equipment into it or given a date it might open because of the sharp decline in auto sales. It was scheduled to open next year. Toyota has said it may build the Prius in Mississippi, but Inaba said those plans are unclear.

Toyota has clearly figured out how to do business in the US: make the government eat a major portion of your costs -- and cut unionized workers' jobs first. (Full disclosure: Toyota's building their monstrous Tundras at a San Antonio plant. No discussion of its closure in the story.)

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quinhon's picture
Submitted by quinhon on

Give Toyota the goddamn plant for free.

If one asshole from the tax supported GM objects, pull all federal money out. It will take the GM overpaid executives about five seconds to agree to GIVE the plant to Toyota. To put the frosting on that cake, have Arnold meet the new owners and throw a huge party for all of the workers out of his personal funds.

Plus, people work there, something that GM will never ever in your wildest dreams ever give a shit about.

Damon's picture
Submitted by Damon on

Let's be clear, here, GM has done a lot of things wrong; this was not one of them or at least they are no more culpable in this than Toyota. Let something else be clear: Toyota has been screwing over its North American workers from Day One; something that can't be said of GM. After years of similar arrogance, especially recently, Toyota is finally having to make the hard choices that GM was forced to make by the government. Toyota is no victim, here, and they didn't 'learn' anything from GM. If anything, they taught GM how to outmanuever the UAW.

There seems to be this myth, out there, that GM is and has always been singularly arrogant, blind, and out of touch in the auto industry. Well, it's finally being revealed that Toyota has been a polished pile of crap, itself, for many years now, coasting by, as well, on its former glory. Why don't you go and actually read the article and the candid admissions by Toyota North America's president?

I know it's been the cool thing the past few decades to beat up on GM at the expense of the other fuck-ups, but that doesn't make it anymore right the longer that it continues.

quinhon's picture
Submitted by quinhon on

Toyota Motor Corporation is a multinational corporation headquartered in Japan, and is currently the world's largest automaker.

Plus that is 4,700 unemployed under the GM plan.

Kiss my honest ass. The first car I bought was a 53 Plymouth, ran great, great gas mileage.

The second vehicle I bought was a GMC pickup. The motor burned out in six to ten blocks from dealer, after I had told them the oil idiot light was showing red and the service manager didn't even check the oil level, just said they all do that for the first couple of miles. Practically no oil in the engine.

Then I bought a Ford pickup and drove it to work 15 miles from the nearest service station. Had it towed back to the dealer and they found out that the transmission seal wasn't on it.

Bought a Datsun 1200. Ran for 250000 miles and I had to replace the gas tank once. It would run all day and all night at 92 mph and it was getting 45 mpg when I loaned to my sister and she wrecked it. I cried.

Yes, I bought two pieces of crap cars, a Nissan and a Subaru.

GM didn't get where they are by competence in the last ten years.

Deal with reality, those 4,700 unemployed does not count all of the parts makers that are going down. Plus, when the patriots screamed buy american, the Japanese built plants here. Then the patriots screamed buy american and Car and Driver tore down an american car and a Japanese car and the Japanese car had more American made parts than the american car.

Friend of mine ragged me in the early 90s about buying American. He had just bought two Ford sports cars for he and his wife. I was helping him clean both the cars one day and I read the stickers on the door. "Made in
Australia." I literally pulled him physically over to read the door stickers.

Toyota Motor Corporation is a multinational corporation headquartered in Japan, and is currently the world's largest automaker.