I’m sure you’re quite familiar with the story; GM (and Chrysler) goes hat in hand to the Federal government — Federal government nationalizes GM, fires CEO, restructures company, offers “Cash for Clunkers” to get people to buy cars from new Government Motors monstrosity . . .
However, somewhere along the way, the idiots restructuring GM an Chrysler — most of whom have never actually worked outside of government in their lives — forgot about the NUMMI plant in California where GM and Toyota make cars (and trucks) together.
FREMONT, Calif. — Toyota Motor Corp. officially confirmed Thursday that it will relocate production of the Tacoma pickup from a plant in Northern California to its state-of-the-art manufacturing facility in San Antonio by next summer.
As part of the plan to shift Tacoma production to San Antonio, Toyota will stop making vehicles at the New United Motor Manufacturing Inc. plant — its first manufacturing facility in the United States, which started in 1984 as a 50-50 business deal with General Motors — in March 2010.
Toyota’s decision to end its 25-year relationship with the NUMMI plant, which also produces the Corolla, came nearly two months after GM said it was pulling out of the joint venture.
This is my theory, which I have no proof for, but seems reasonable:
- The idiots restructuring GM forgot about NUMMI, or
- They thought pulling out of NUMMI would force Toyota to have to deal with the United Auto Workers at the plant, and
- They allowed the plant to “wither on the vine” to let the UAW get a stronger hand with Toyota.
Except it doesn’t work that way in Japan. Japanese Unions are not formed around a trade; they are formed around the individual plants, where they work in harmony with management for fair representation of the workers.
Japanese management finds the American Union thug-ocracy to be rude and insubordinate, and has no use for it. So given the choice between shuttering a rude plant California and dealing with a jobs-friendly San Antonio . . .
“This is really a big shot in the arm, especially when you consider that the jobs multiplier is five, and I think that is conservative. By next year, we’ll be running pretty darn strong. We’re already doing well relative to other parts of the country,” Wolff said.
“San Antonio is emerging as an economic powerhouse. This demonstrates the talent of the work force and the low cost of doing business in San Antonio, as well as a high level of public and private cooperation,” Mayor Julián Castro said.
But in California, the move amounts to a supreme body blow to a state already reeling from financial and economic woes.
Thousands of production workers, each of whom earn about $65,000 annually at the West Coast’s lone auto plant, stand to lose their jobs and a network of more than 1,100 California-based suppliers that employ tens of thousands of workers will be affected. California officials estimate those suppliers employ about 18,800 workers who add a total of $904 million annually to the state’s payroll.
The workers were told more information would come at a later date and that union management is negotiating the next phase of discussions.
Oh yeah — I’m suuuuuure they are . . . Doesn’t sound like there’s anything to negotiate anymore.
San Antonio and Texas leaders also took notice as they started readying an incentives package weeks ago.
On Thursday, city and county officials said it includes a 10-year abatements on property taxes as well as state sales tax rebates on capital investments and new machinery to retool the plant, which could cost $100 million.
Additionally, Toyota could receive a $2,500 credit for every new hire from a “designated disadvantaged zone.”
In other words, Money talks and B.S. walks. Pop Quiz: Which one is Texas?