California needs the 5,000 manufacturing jobs Toyota's NUMMI plant brings to the state. Toyota desires a physical presence in California, where it sells more of its vehicles than in any other state in the nation.
So it makes no sense to close the only vehicle assembly facility remaining in California the New United Motor Manufacturing plant in Fremont. But that became a troubling possibility Monday when General Motors announced plans to end its quarter-century involvement with Toyota at the NUMMI plant next month.
This is a job for Gov. Arnold Schwarzenegger. Last week, the governor bent over backward to ensure that Tesla will produce its newest electric car in California, saying, "to see this company build a plant in New Mexico drove me absolutely insane. My administration "... does not like to lose."
The Fremont plant is one of AlamedaCounty's top 10 employers. Closing NUMMI would be a greater loss to California than losing the Tesla plant to New Mexico. Schwarzenegger should offer Toyota the necessary incentives to make the NUMMI plant a model for producing fuel-efficient cars for years to come.
California represents a huge market for the green cars of the future. Last year NUMMI churned out nearly 300,000 Corollas and Tacomas. Imagine the excitement that would be generated if Toyota were to build an electric version of the Prius in the GoldenState.
But the Fremont plant presents two obstacles that will need to be confronted:
NUMMI is the only one of Toyota's 12 operations in North America that is unionized, resulting in higher costs to the company. The union's contract expires Aug. 31. Given that Toyota reportedly suffered its first annual loss this year since 1950, the union should be prepared to grant concessions in order to help keep the plant open.
NUMMI also lacks nearby suppliers, which contributes to making it the highest cost plant in Toyota's North American operations. That's where Schwarzenegger needs to step in with some incentives to help make California more competitive.
He won't have to look hard for examples of how to get the job done. Tennessee, Alabama and South Carolina all offered foreign manufacturers Mercedes, Honda and BMW more than $150 million in tax incentives to locate plants in their states. Since Toyota already has a plant and experienced workers at its disposal in California, it might not cost Schwarzenegger as much to get the Japanese automaker to stay.
California is in the midst of cultivating a green-friendly atmosphere with the intent of encouraging clean businesses to invest in the state. Toyota has been at the forefront of manufacturing fuel-efficient vehicles that are popular with California drivers.
Keeping the NUMMI plant open for business is a good investment for both parties.
Offer my tax $$$ to get a cash-laden, foreign, global corporation to stay in CA???!!!???
I'm sorry, but this Governor better not! Especially not in this economy!
First of all, where on earth does he think he's going to find the money now or even 2 years from now? CA can't even pay its bills and we're the laughing stock of the Union because of those IOUs we're having to issue.
Secondly, even if it's in the form of a tax incentive, that is still money that we are in dire need of that we won't be getting! No, no more spending of the "bailout" type, please!
Better to think about setting up a program to support those displaced NUMMI employees when the plant closes. Help these people out of those dead-end, assembly line jobs by letting them acquire new, transferable, and marketable skills for the "clean businesses" of the future. That would be a better investment of my tax $$$, IMO.
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