Toyota and GM previously teamed up for producing cars at NUMMI, a joint manufacturing venture based in Fremont, CA. Following GM’s exit from NUMMI during bankruptcy restructuring, Toyota has announced that it will be closing the plant.
The NUMMI facility was erected nearly 25 years ago as part of Toyota’s push to build cars here in America. Recently, the plan was responsible for building the Toyota Matrix/Pontiac Vibe, the Toyota Tacoma pickup truck, and the Toyota Corolla.
NUMMI’s closure represents a turning point in Toyota’s history admits one Washington Toyota dealer, and perhaps reveals bigger problems and the dire state the automotive industry is in overall. Toyota has long avoided the political and public turmoil that a plant closure would cause, but it seems as though the closing of NUMMI was simply unavoidable.
Following the closure of the NUMMI plant, Toyota’s Cambridge, Ontario based facility will fill orders for Toyota dealers. After GM withdrew from the partnership, Toyota evaluated production alternatives, and carefully considered current and future market conditions. Corolla production will be accounted for in its Ontario-based plant, but the question is where production of the Tacoma truck will move to. One possibility says Toyota Service Costa Mesa is an underutilized plant based in Texas that is responsible for the full-size Tundra.
Prior to GM’s departure from NUMMI, the automaker offered vehicles under its Chevrolet and Pontiac brands that were built on a Toyota platform. GM was eager to gain insights into Toyota’s lean manufacturing operations, while Toyota gained insights into building cars in America according to Tacoma Toyota dealers and specifically learned issues relating to human resources, unions, and government relations.
With Toyota looking to slash costs everywhere it can amid slumping auto sales, the move has not been terribly surprising. Nonetheless, the plant employs 4,700 workers, which now are faced with an uncertain future.
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It appears that the Big Three aren’t the only ones dealing with manufacturing issues as Toyota manufacturing has also faced increasing challenges.