Visit happily-retired's column >>

HAPPILY-RETIRED

Striving to be like Forrest Gump
Add To Watchlist
Articles Posted: 30; Links Seeded: 243
Member Since: 1/2009

Toyota considers following GM out of Nummi deal

Read ArticleArticle Source: The San Francisco Chronicle

Toyota Corp. said Friday that it might be forced to follow General Motors and withdraw from a partnership that created the Nummi factory in Fremont 25 years ago.

What's this?
Who's leading the conversation?
This visualization below allows you to see the impact that each user has on the current conversation. The top row contains the group of users who have had the most impact, the 2nd row the group of users who have had the 2nd most impact (et cetera). Users with similar impact are grouped together, and the average score of the group is shown to the left of the group. The author of the article is also shown on the left, in their corresponding group. Each user's score is based on the number of comments the user has made plus the number of votes their comments have received. The scores are calculated relative one another, so while their absolute value is not particularly important, their relative difference does indicate a larger difference in impact on the conversation.
1.5
{"commentId":8169050,"authorDomain":"happilyretired"}

It is a tough choice. Overlooked is the interdependence of the TABC plant in Long Beach and the TMMBC plant in Tijuana. Not to mention suppliers such as Dana that makes the frames and ships to NUMMI, TABC, TMMBC and the Corolla plant in Canada (TMMC). The issue boils down to the Tacoma. Other production could be moved rather easily. However, enegy and maintenance costs are based on hourly usage, which translates to higher per unit costs as volume decreases. I am certain that Toyota is weighing these fixed costs against the added logistics costs of moving NUMMI volume to San Antonio. With the Tijuana plant at full capacity and the Long Beach plant not having the extra capacity, San Antonio would be the logical choice.

However, a Japanese trait is that all parties must be able to part company while saving face. The straight up business decision is not so tough, but doing it while saving face for all, is very difficult. My best guess is that NUMMI will cease to function, but something like a very downsized TMMCAL will replace it.

{"commentId":8169050,"threadId":"624853","contentId":"3019315","authorDomain":"happilyretired"}
  • 1 vote
Reply#1 - Sun Jul 12, 2009 10:13 AM EDT
{"canLink":false,"threadId":"624853","isPrivate":false}
Leave a Comment:
You're in Easy Mode. If you prefer, you can use XHTML Mode instead.
As a new user, you may notice a few temporary content restrictions. Click here for more info.
{"threadId":"624853","contentId":"3019315"}
Start TrackingStart Tracking
Stop TrackingStop Tracking