In August Toyota announced it will terminate the operations at the NUMMI (New United Motor Manufacturing Inc.) - the Californian factory. Nikkei business daily reported, Reuters cited, the maker from Japan wants to kill the whole workforce there, this means that 4,700 employees will be leaving the firm by the future spring.
The NUMMI shut down will be affecting about 50,000 Californian jobs, including local businesses and suppliers. This fact attracted criticism, obviously, from UAW who said this decision Japanese builder made is unfortunate and devastating.
'Toyota's announcement that it will close the NUMMI plant is devastating news for thousands of workers in California' said Ron Gettelfinger - UAW President. 'This is no time to close a highly successful manufacturing facility. California is one of the most important markets for Toyota' Jimmy Settles – the UAW Vice President continued, stating that move as 'illogical'.
Toyota affirmed the principal factor attracting the closure of NUMMI was the high location cost which, apparently, attracted high work expenses. 'After the decision by General Motors to withdraw from the NUMMI joint venture, Toyota conducted a thorough review of its alternatives in light of current and anticipated market conditions. Based on this review, we have determined that over the mid- to long-term, it just would not be economically viable to continue the production contract with NUMMI. This is most unfortunate, and we deeply regret having to take this action' stated for the press the TMC vice president, Atsushi Niimi, in August announcing the production stop of NUMMI.
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