Closing the Nummi Plant (Fresno: sales, 2009, insurance)

[Boompa]

Talk about mismanagement, GM closing a union plant that was producing Toyotas. The person in charge of the """Bankruptcy""" should be fired.
Thousands more unemployed die to mismanagement

[Sunnnee]

If they move their operations to another state, its because its cheaper labor. Why would they continue to pay California workers $25-27 hr when they can pay someone in Mississippi (rumored move) for $15.00 hr. Its a sad situation, but I hope those workers know how to do something else besides build cars. If they don't have any computer skills they will be screwed.

[Zoidberg]

Anyone know how much GM, et al. paid for the NUMMI site when it was acquired, and what that land and site is worth today?

It's not like they're making more land in that neighborhood...

[FresnoFacts]

I think that GM has had a plant at the site from 1962 until it closed about 1982 or so. The NUMMI partnership with Toyota reopened the plant in 1984.

Since GM has had the land since 1962 it was probably originally purchased very cheap compared to today.

[OC Investor2]

I was talking to a friend who is in recruiting. He said it can cost a co. $15/hr just for Workers Comp in CA for a manufacturing employee. If this is true, I'm shocked the plant stayed open as long as it has.

Just another day in the state with the worst business climate in the US.

[FresnoFacts]

Toyota has said that a car built at NUMMI costs over $500 more than if it was built at one of the other US plants.

[AlfredB1979]

Originally Posted by OC Investor2

I was talking to a friend who is in recruiting. He said it can cost a co. $15/hr just for Workers Comp in CA for a manufacturing employee. If this is true, I'm shocked the plant stayed open as long as it has.

Just another day in the state with the worst business climate in the US.

Not a surprise. The state is its own largest WC provider and not because insurance is affordable, either...people do forget how expensive employees are beyond wages. Been there.

[18Montclair]

Toyota needs to leave already so that the numerous electric car companies in the Bay Area can create a consortium and move in.

Please Toyota, go.

[sonarrat]

Originally Posted by FresnoFacts

Toyota has said that a car built at NUMMI costs over $500 more than if it was built at one of the other US plants.

On the other hand, they can pretty much sell them out of their lot all day to Californians.. minimal freight charges when you're right in the middle of your largest market.

[FresnoFacts]

The state is offering Toyota a large incentive package to keep NUMMI open.

Too bad they don't recognize that all businesses in the state would appreciate assistance like this.

The offer to Toyota includes:
** Waiving the sales taxes on $20 million a year in machinery upgrades for the plant
** A special rate to let Nummi buy its electricity at a lower cost
** Designating the plant an enterprise zone which would allow them to carry current operating losses forward to offset future profits
** $20 million from the state to help improve the plant's shipping facility
** $29 million in interest-free money from the county and city to help retool

State offers incentives to save Nummi plant